US equity indices are trading in minor positive territory following the release of positive data from the US as Chicago PMI came in better than expected to reach a near 12 month high, shrugging off a lower than expected GDP release as real final sales and wage revisions pointed to a pick-up in momentum. Market focus remains on the imminent sequester spending cuts with the senate due to vote on sequestration replacement bills at 1930GMT/1330CST.
In the FX markets, EUR/USD remains weighed upon by a think tank report that the ECB could have a protracted discussion regarding interest rates at next week’s meeting.
T-notes trade broadly flat after tracking Bunds higher in the European session but turning course as the US reacted to the positive data points. Underlining concerns about Italy have prevented any steep losses in fixed income.
The energy complex has been driven by the USD today as the weakening EUR keeps the USD on the front foot, driving WTI crude futures into negative territory.
Print 18:45, 28 Feb 2013 - Update - Source: RANsquawk
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