What to Watch: Brexit vote in parliament, gambling stocks sink, German economy slows

Here are the top business, market and economic stories you should be watching today in the UK, Europe and abroad:

The big Brexit vote

British prime minister Theresa May faces the prospect of defeat in a historic vote in parliament on her Brexit deal on Tuesday evening. The voting is due to start at 19:00 local time.

If lawmakers fail to back May’s deal, which was agreed late last year with the European Union, it leaves the country in an uncertain limbo and is expected to create extra volatility for the pound and financial markets.

May’s hopes of saving the plan will hinge on the scale of her loss: if she limits the size of the expected defeat, May will probably ask Brussels for more concessions in the hope of getting her plan through parliament in another vote.

But a humiliating outcome could force May to delay Britain’s scheduled departure from the EU on 29 March and potentially open up other options ranging from a second referendum to leaving the EU with no deal.

Dominic Raab, who resigned as May’s Brexit minister in November in protest at her plans, said it was time to prepare for a no-deal Brexit, something many employers fear could mean chaos for their businesses.

RELATED: The five main possible outcomes if the Brexit deal is rejected

European stocks edge higher

European stock markets were making tentative gains on Tuesday after China signalled it could introduce more stimulus measures to soften the blow from an ongoing trade war with the United States.

Britain’s FTSE 100 (^FTSE), Germany’s DAX (^GDAXI) and France’s CAC 40 (^FCHI) were also rising by between 0.3% to 0.5% in early trading.

Sectors reliant on trade and exports to China, like tech, industrials, basic resources, and autos, were the top gainers.

The autos sector was also performing well after a strong update from Peugeot maker PSA Group (UG.PA).

Over in Asia, markets ended the day with robust gains, with many rising by more than 1%. Hong Kong’s Hang Seng index (^HSI) had a standout 2% jump.

Turning west, US stock futures were edging higher on Tuesday. The S&P 500 (ES=F), Dow Jones industrial average (YM=F) and Nasdaq (NQ=F) were all making small gains ahead of the open.

A gamble gone wrong

Shares of British betting companies, which have been pushing into the United States market because of tighter regulations at home, fell on Tuesday after the US Department of Justice called for wider restrictions on all gambling on the internet.

Shares in UK bookies such as William Hill (WMH.L), Paddy Power Betfair (PPB.L) and 888 Holdings (888.L) fell between 1% to 8% on Tuesday morning after the US regulator reversed its 2011 opinion.

The new opinion by the regulator’s Office of Legal Counsel was written in early November but disclosed only late on Monday.

UK gambling companies had been making deals to move into the US market after a US Supreme court ruling in May took the United States a step closer to legal sports betting in numerous states, perhaps nationwide.

German economy slows

The German economy grew by 1.5% in 2018, the weakest rate in five years, according to a preliminary estimate from the Federal Statistics Office.

Europe’s largest economy has stumbled as the global economy has cooled and trade disputes intensify between the US and its partners. The risk of Britain leaving the European Union without a deal in March has also hurt the country.

Growth last year was mainly driven by domestic demand, including household consumption and state spending, according to the new statistics.

The Federal Statistics Office expects the economy probably grew slightly in the fourth quarter of 2018, which would mean the country escaped a recession. A recession is defined as two or more consecutive quarters of economic contraction.

Germany’s annual growth rate in 2016 and 2017 came in at 2.2%.

With files from Reuters.