US President Donald Trump said yesterday, 20 December he would veto the latest federal budget unless it includes money for his wall along the Mexican border. This raised the prospect of a government shutdown if a deal could not be struck by midnight today, 21 December.
This is a sign that Trump’s presidency faces many more bumps in the road after losing the House of Representatives in November’s mid-term election.
US stock markets and the Dollar fell further on shutdown fears, with the S&P 500 and Nasdaq dropping 1.6 per cent and the Dollar slipping against a basket of currencies.
Meanwhile, UK Work and Pensions Secretary Amber Rudd became the first Cabinet minister to publicly mention the idea of a second referendum if the Brexit withdrawal agreement does not pass a meaningful vote anticipated in mid-January. In an ITV interview with Robert Peston yesterday, she said she “could see there would be a plausible argument for it”, if the UK heads for a no-deal Brexit, putting her at odds with Prime Minister Theresa May.
Today the UK and US will release their final top-tier data for 2018, starting with GDP data at 09:30 (GMT) and 13:30, respectively. With concerns over a dramatic slowdown in global growth in 2019, the releases could cause volatility in the markets ahead of the festive break.
Global investor confidence lowest in decade
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