News Headline Summary

US President Obama is to make a statement on budget talks at 1330EST (1830GMT)

White House says:
- Middle Class Americans to join Obama for statement.

Reaction details (18:58)

- Following this announcement, and alongside source comments on an emerging fiscal cliff deal, e-mini S&P moves 5 points higher from 1403 to 1408 over 2 minutes and trades at fresh session highs.
- T-notes trade at fresh lows; trading down 9+ ticks at 132.21 last.
- Spot gold trades at fresh intra-day highs, with gains of USD 13.4 over the past 20 minutes; trades USD 1,676.75 last.

Analysis details (18:59)

- The announcement of a statement from Obama comes at the same time as sources outlining an emerging fiscal deal and supporting comments from a senior Republican aide; combined these statements imply a deal is nearing and hence markets are demonstrating renewed optimism heading into the midnight deadline.

31 Dec 2012 - 18:41 - Equities Economic Commentary - Source: Newswires

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