Global stock markets are boosted by optimism over US-China trade negotiation. And commodity currencies ride on positive sentiment to strengthen broadly today. On the other hand, Yen is clearly under broad based pressure as risk aversion receded. It's followed by Dollar and then Swiss Franc. Euro shows little reaction to unexpected fall in unemployment rate. Meanwhile, Sterling is mixed as the Brexit debate resumes in Parliament. BoC rate decision will be a major focus in US session. The central bank will very likely keep policy rate unchanged at 1.75%. But this is far from being certain after recent rebound in oil prices. Still, the current rebound is seen as mainly driven by the Saudi-led production cut and US-China trade talk. And the boosts to oil prices should be short-lived. BoC might also downgrade its GDP growth forecast modestly in today's new projections. FOMC December meeting minutes will be another focus. But detail were already provided during the post meeting press conference, as well as the projections. We'd not expecting anything substantial from the minutes. In other markets, DOW futures point to another day of triple digit gain at open. At the time of writing, FTSE is up 1.06%, DAX Is up 1.35% and CAC is up 1.39%. German 10-year yield is down -0.0021 at 0.228. Earlier in Asia, Nikkei rose 1.10%. Hong Kong HSI rose 2.27%. China Shanghai SSE added 0.71% and Singapore Strati Times rose 1.12%. Japan 10-year JGB yield rose 0.0339 to 0.032. |
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