US equity futures trade higher on the back of positive sentiment from the European session and pre-market data including Unemployment data slightly better than expectations and a beat on Pending Home Sales. However volatility was observed and some of the gains were pared after comments from US House Speaker Boehner caused the optimism regarding the fiscal cliff that we have seen over recent days to dissipate, he commented that Obama's actions have not matched his statement and no substantive progress has been made in talks. T-notes remain around highs after a well received USD 29bln 7yr note auction.
EUR/USD moved to the upside in early trade following the general risk on theme in Europe as focus is drawn away from the Europe’s debt situation by the fiscal cliff. However some of the gains were retraced after Boehner’s comments. GBP/USD trades in marginally positive territory following earlier data releases, choppy trade has been seen of late following weakness in the USD.
WTI and Brent Crude futures trade in positive territory, with moves to the upside being welcomed by participants after three consecutive days of settling lower. The move to the upside was support by the risk on sentiment in the markets, but reflecting equities some of the gains were retraced after the recent more negative comments on the fiscal cliff. Also contributing to risk on sentiment in crude futures was the news that Iranian activities are to come under investigation and Western Libya’s main oil refinery being shut down due to protests.
Print 18:37, 29 Nov 2012 - Economic commentary - Source: Newswires
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