A day after optimism on the US-China trade deal propelled European stock markets to close at the highest level since January 2018, markets are expected to open flat as traders await developments on UK elections on Tuesday. UK MPs rejected PM Boris Johnson’s calls for early general elections on December 12, but he is all set to try again today, driving more uncertainty around Brexit.

Johnson was unable to get the two-thirds majority but could try a different route by introducing another bill which needs a simple majority to call for general elections. On Monday, the EU granted Britain a three-month extension with a rider that lets it leave on the first of the next month as soon as the Brexit Bill is ratified. Johnson is keen for general elections to strengthen his support base before reintroducing the latest withdrawal agreement in the Parliament.

Meanwhile, the market sentiment has improved and pushed more traders into stock markets after Trump hinted at the possibility of the “Phase 1” trade deal being signed sooner than expected. In addition, the USTR office also admitted that it is looking into extending tariff exclusions on $34 billion worth of Chinese imports beyond the deadline on December 28.