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Danske Bank analysts points out that after UK PM Theresa May’s defeat yesterday on the new Brexit deal, the House of Commons is voting tonight on whether it can support leaving the EU without a deal.

Key Quotes

“We maintain our view that the House of Commons will vote to reject a no deal Brexit and instead tomorrow vote in favour of an extension. Also look out for responses from EU leaders and politicians.”

“In the euro area, focus is on the January industrial production figures, which will shed some light on how the economy started the year. In December, production declined by 4.2% y/y – the biggest decline since the financial crisis. Already released country data paints a somewhat mixed picture for January, with industrial activity picking up in Spain, France and even Italy, while Germany continues to struggle with headwinds from the car sector. We will also listen to the ECB’s Couere for clues on whether the ECB wants to correct last week’s market interpretation of its stance.”

“In the US, capital goods data for January is released. New capital goods orders have been falling since September last year, indicating a slowdown in investments at the beginning of 2019. Overall, we expect investments to continue growing in 2019 but probably not at the same pace as 2017 and 2018.”