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Traders work on the floor of the New York Stock Exchange (NYSE) in New York, U.S., on Wednesday, Jan. 2, 2019.
Also weighing on investors is the partial government shutdown, which has entered its 25th day and is the longest shutdown on record. The Democratic Party is at odds with the Donald Trump administration over the president’s proposed $5 billion U.S.-Mexico border wall.
In other political news, traders will likely monitor a crucial U.K. Parliament vote on Prime Minister Theresa May’s Brexit deal, which is due to take place Tuesday evening. May is widely expected to suffer a defeat, with many in her own party set to vote down the European Union withdrawal agreement.
The margin of defeat for May will likely be the big area of focus for market players as it implies how negative an impact the result will have on the Brexit plan and May’s leadership. Sterling fell 0.1 percent against the dollar in early morning trade, to $1.2850, while the yield on the 10-year gilt fell to 1.267 percent.
On the data front, producer price index (PPI) inflation and Empire State manufacturing survey numbers are due at 8:30 a.m. ET. Meanwhile, Minneapolis Federal Reserve Bank President Neel Kashkari will give a speech in Rochester, Minnesota, at 11:30 a.m. ET.