News Headline Summary

Newsflow remains quiet and volumes light as all focus remains on the fiscal cliff, US Senate due to reconvene at 1600GMT/1100EST...

Update details:

- Over the weekend, Senate majority and minority leaders met for negotiations, but no agreement was reached.
- As a reminder, Senate majority leader Reid said the Democrats will not agree to use a new inflation measure sought by Republicans for calculating Social Security cost-of-living increases as part of a short-term deal.
- FTSE 100 and CAC 40 both opened with losses reflecting the uncertainty, trades down 0.45% and 0.25% respectively.
- EUR/USD trades close to session lows at 1.3184 last, as the USD-index lies just below session highs.
- The Eurex remains closed today, with the NYSE LIFFE seeing an early close at 1300GMT, so volumes are expected to remain light.

- For further information on the fiscal cliff situation, please refer the research piece 'ANALYSIS: Fiscal Cliff - What happens next?' available in the research section.

Print 08:21, 31 Dec 2012 - Market Analysis - Source: RANsquawk