DAILY ASIA-PAC OPENING NEWS

US

US stocks finished positive in which the S&P 500 and DJIA posted fresh record closes with outperformance in the Nasdaq on tech strength, while energy also rallied after reports that the Forties North Sea pipeline was shut down, resulting in an increase of WTI & Brent oil prices. S&P 500 +0.32% at 2660, NASDAQ100 + 0.78% at 6394 and Dow Jones +0.23% at 24386.

 

Treasuries saw a bout of volatility with an early bid seen after a reported terrorist attempt in New York, however shortly pared the gains as police caught the suspect, while pressure was later seen after a weak 10 year auction with a tail of 0.05bps, a weaker B/C than the 6 auction average, and with dealers taking higher than the average.

 

ASIA-PAC
 

China outlined a contingency plan to battle US tax changes and the Fed’s expected decision to hike rates. China is looking to counter Trump’s tax overhaul through higher interest rates, more regular currency intervention and tighter capital controls to keep money at home and support CNY. (WSJ)

 

Chinese New Yuan Loans (CNY)(Nov) 1120.0B vs. Exp. 800.0B (Prev. 663.2B). (Newswires)
Chinese Aggregate Financing (CNY)(Nov) 1600.0B vs. Exp. 1250.0B (Prev. 1038.7B)
Chinese M2 Money Supply YY (Nov) 9.1% vs. Exp. 8.9% (Prev. 8.8%)

 

EU/UK

German Chancellor Merkel told party members that a mandate for Brexit is not likely to occur until February. (Newswires)

FX

The dollar index traded relatively flat on the day, outperforming against sterling amid continuing Brexit uncertainty followed from weekend reports that pro EU tory rebels believe they have a chance of securing a ‘meaningful vote’ on the final deal before ministers formally initiate Brexit with leading party whips said to be worried they won’t be able to prevent this. On the other end, the kiwi outperformed against the greenback following the RBNZ naming the New Zealand Superannuation Fund CEO Adrian Orr as the next RBNZ Governor.

COMMODITIES

Brent crude oil hit two-year highs (USD 64.85/bbl, its highest level since June 24, 2015) as the Forties Pipeline System, carrying more than 40% of the UK North Sea’s oil and gas, is to be shut down for "weeks" rather than days to repair a crack in the pipe.

11 Dec 2017 - 22:10- EnergyResearch Sheet- Source: Newswires

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