US equity markets have rallied after earlier succumbing to risk off sentiment with continuing reports of violence in the Middle East. The rally came after positive comments from the meeting of Obama and congressional leaders on the subject of the fiscal cliff with consensus suggesting that progress is being made with a regards to a deal, both Democrats and Republicans recognising a deal must be reached. Weaker than expected US Industrial Output had no effect on the markets as the Fed claimed excluding the effects of Hurricane Sandy output was unchanged. US T-notes reflected the move to the upside in riskier assets and dropped lower in response to investors increased appetite for risk.
Strength in the USD weighed on EUR/USD due to the further uncertainty surrounding Greece. USD/JPY continues to climb on the back of the prospect of further and more aggressive policy easing from the under potential new leadership.
WTI and Brent crude futures trade higher after another day of choppy trading. The move into positive territory followed reports of further turmoil in the Middle East but ample stockpiles and lingering concern over the global economy tempered gains.
Print 18:03, 16 Nov 2012 - Market Analysis - Source: RANsquawk
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