Focus Remains On UK's Vote On More Votes: 5 Things The Global Markets Are Talking About Today

Market focus remains on the U.K. as it votes whether to have more votes.

On Wednesday, U.K. MP's voted to reject a no-deal Brexit. It's not a legally-binding decision and it does not rule out the U.K. leaving the E.U., but it means MP's now get to vote on delaying Brexit.

That vote takes place later today (3:00PM EDT), and if it passes and the E.U. agrees to it, Britain will not leave the union as planned on March 29. Prime Ministe Theresa May is expected to ask for an extension lasting about two months.

With this in mind, here are five things the global markets were talking about on Thursday.

1. Asian Stocks Look On Mixed

In Japan, the Nikkei ended little changed overnight after China reported a mixed bag of data that renewed investor worries about the global economy. The Nikkei share average ticked 0.02 percent lower, while the broader Topix dropped 0.2 percent.

In South Korea, the Kospi stock index rallied 0.34 percent overnight as foreigners turned net buyers.

Down-under, Australian shares snapped four days of losses as miners gained, while financials capped gains on regulatory uncertainty. The S&P/ASX 200 index ended up 0.3 percent. The benchmark was down 0.2 percent on Wednesday.

In China, stocks fell overnight, extending this week's losses, after data showed that growth in industrial output plunged to a 17-year low in the first two months of 2019, reinforcing investor concerns over a slowing economy. At the close, the Shanghai Composite index was down 1.2 percent, while China's blue-chip CSI300 index was down 0.69 percent.

In Hong Kong, stocks edged a tad higher after China reported stronger-than-expected investment in its slowing economy, but gains were capped on a disappointing industrial output number. The Hang Seng index ended 0.2 percent higher, while the Hang Seng China Enterprises index rose 0.4 percent.

In Europe, regional bourses were trading higher across the board, with the exception of the FTSE 100, which was underperforming on continued strength in the pound.

2. Oil Hits 4-Month Highs

Crude oil futures reached a four-month high on Thursday morning, as a production curb agreement by OPEC, coupled with U.S. sanctions on Iran and Venezuela tightened global supplies.

The ‘black stuff' also found support from Wednesday's unexpected dip in U.S. crude oil inventories.

In the Euro session, Brent crude oil futures hit an intraday high of $68.14 per barrel before easing to $67.05, up 0.74 percent from the previous close. U.S. West Texas Intermediate (WTI) crude futures were at $58.62 per barrel, up 0.62 percent.

Oil prices have been receiving broad support this year from supply cuts by OPEC aimed at tightening markets. Earlier this week, Saudi Arabia announced further plans to cut its crude oil exports in April to below 7M bpd, while keeping its output "well below" 10M bpd. That compares to production of around 10.14M bpd last month.

Also supporting prices is the political and economic crisis in OPEC-member Venezuela, while stateside, the U.S. Energy Information Administration (EIA) indicated that commercial crude oil inventories fell last week as refineries hiked output.

3. European Sovereign Yields Push Higher

Investors seem keen on selling safe-haven eurozone government bonds this morning, pushing sovereign yields higher, as the U.K. parliament's rejection of a "no-deal Brexit" is boosting risk sentiment. However, the markets uncertainty over the next steps is limiting the sell-off.

The German 10-year Bund yields backed up 2 bps to 0.086 percent, but still not far from its two-year lows of 0.048 percent hit earlier this month. Other high-grade eurozone bond yields wre also 1-2 bps higher.

In the U.K., Gilt yields are sharply higher, with 10-year yields up nearly 5 bps on the markets expectations that a favourable outcome on Brexit would allow the BoE to hike rates later in 2019.

4. Sterling Off Highs, Waiting For Extension Vote

The pound pulled away from its multi-month highs against the USD and EUR reached Wednesday after the Parliament voted against leaving the E.U. without a deal. Market focus now turns to another parliamentary vote this afternoon (3:00PM EDT) on an extension to Article 50. Delaying Brexit further is more or less fully priced in. GBP was down 0.3 percent at £1.3246, off a nine-month peak of 1.3382 reached late-Wednesday.

5. German Inflation Holds Steady

Data released Thursday morning from Germany's Federal Statistical Office showed inflation remained stable last month, endorsing a preliminary estimate.

The annual inflation rate (measured by harmonized E.U. standards) measured 1.7 percent, the same rate as in January and in December 2018.

Digging deeper, energy prices in Germany rose 2.9 percent over the past year, while prices for food and services both increased by 1.4 percent.

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