The e-mini S&P trades with minor losses, the under performer amongst its peers as the Nasdaq and the Dow both trade with minor gains, however all indices have been impacted as the uncertainty over the fiscal cliff resumed. The latest commentary from Washington has highlighted how far apart Republicans and Democrats are and that despite both sides making public concessions yesterday, a deal by the end of the week is still not a certainty. In terms of stocks 7/10 sectors in the S&P 500 trade in the red, with Health Care the laggard with losses of 0.63%, partly to blame for this slip is Intuitive Surgical who are down by close to 4% and have been mentioned cautiously by Citron Research, further exacerbating the move. Also contributing to the downside move was Alcoa who were down by 3% after news that Moody’s is to review their Baa1 rating for downgrade. T-notes trade in positive territory reflecting the risk off sentiment seen in equities, bouncing from yesterday after high long yields stimulated demand.
EUR/USD and GBP/USD both trade in minor positive territory but have retraced gains from their high prints of the day after USD strength was observed following safe haven flows due to resumed fiscal cliff uncertainty. USD/JPY also trades in tandem with USD strength, though the pair has seen support from weakness in JPY with expectations of easing from the BoJ overnight.
WTI and Brent crude futures trade in positive territory, bucking the risk off trend in other asset classes, with positive German IFO data supports the perception of a Euro zone recovery and reassures investors of strong demand. DOE Inventories also contributed to a move to the upside with a draw down in US crude inventories of almost 1mln, though this was not as much as expected.
Print 18:38, 19 Dec 2012 - Economic commentary - Source: RANsquawk
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