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Daily Briefing –Monday, December 4, 2017

Europe

Traders wait for the opening of the European markets this morning as the US Senate passes the major tax reform bill on Saturday morning raises expectations of sharp gains today. Adding to the positive feelings is optimism as to an imminent break in the deadlock of the Brexit divorce settlement. In the Forex front, the GBPUSD has been on an upward trend. Today’s meeting between Prime Minister May and EU Commission president Junker may put Sterling under pressure.

 

US

President Trump’s tax reform initiative was narrowly approved by the Senate early on Saturday morning. Hampering the USD however, is the Russia connections probe. It remains to be seen how the US markets react today. In good news for the greenback, it jumped against the JPY this morning. Keep a look out for major economic news coming out of the US this week, culminating with the NFP figures due out on Friday.

 

 

Asia

Trading has been mixed in today’s Asia-Pacific session with the Australian ASX 200, the ANZ and the NIKKEI all down. The South Korean Kospi made gains as did the Hang Seng index. In Australia, a probe has been ordered into major social media outlets, Facebook, Google and Twitter. It remains to be seen whether this will have any effect on the money markets.

 

 

Commodities

Crypto-currencies again on the news with Bitcoin soaring beyond $11,700. Some experts continue to warn that the crypto-currency is a bubble waiting to burst, others predict that with climb even higher. On the Crude Oil front – prices rose after the OPEC and other producers’ agreement to extend output cuts but news that IS shale drillers have been adding more rigs, brought Brent and WTI down this morning from a high on Friday.

 

Shares

The BIS (Bank for International Settlements) has warned that the market situation today is similar to that prior to the 2008 crash, with heavy borrowing to invest in risky assets. This is yet another warning about the stock market bubble waiting to burst.

 

Today’s Events

09:30 AM GMT GBP: PMI Construction (Nov)
10:00 AM GMT EUR: Producer Price Index (MoM) (Oct) & Producer Price Index (YoY) (Oct)
03:30 AM GMT+1 RBA Rate Statement and RBA Interest Rate Decision

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