HEADLINES – INTERNATIONAL
The U.K. economy grew 0.6% in 4Q, beating the 0.5% median prediction of economists and marking a 16th straight quarter of growth. It was driven entirely by services, helped by consumer spending, with zero support from production and construction.
U.K. to Pursue Trade Talks With U.S. in Coming Months: “It will take detailed work, but we welcome your openness to those discussions and hope we can make progress so that the new, global Britain that emerges after Brexit is even better equipped to take its place confidently in the world,” U.K. Prime Minister Theresa May to say at Republican congressional retreat in Philadelphia, according to prepared remarks.
Bundesbank President Jens Weidmann says in speech in Berlin that euro-area inflation is heading toward ECB mandate, and “once price developments are sustained, they will provide the foundation for an exit from loose monetary policy.”
Mexico’s President Cancels U.S. Visit as Trump Feud Deepens. Trump Administration is speaking theoretically about tariffs on Mexico and the 20% border tax floated earlier today is just one solution, White House spokesman Sean Spicer tells reporters.
The dollar rises against most of its G-10 peers before the release of jobs and housing data.
USD/JPY rose to a weekly high at 114.86, while EUR/USD dropped to a weekly low at 1.0658; Bloomberg dollar index pared gains to about 0.5% from a high of 0.8%.
CNH weakens and stabilizes around ~6.8450 in NY afternoon session as dollar rebounds; market is quiet in the last trading day before the long holiday.
European bonds slid across the board alongside Treasuries as stocks continued their advance
Italy’s government bonds led the slide in Europe after the court ruling Wednesday renewed prospects of another election, triggering political uncertainty
German 10Y yields in range between 0.47%-0.50%, while Italy and France pressured by political risks and supply schedule; Italy 10Y yield reached the highest since July 2015 and France 10Y yield topped 1% with next key resistance at 1.19% from September 2015
Treasury 10-year notes fall as the global rally in equities gains momentum and investors opt for riskier assets.Treasuries reversed losses after 7Y auction saw record indirect bidders; yields were 1bp-2bp lower across the curve
Stoxx Europe 600 Index rose 0.3%
The Dow Jones Industrial Average rose 32.46 points to 20,100.97. in New York, after Wednesday closing above 20,000 for the first time
The S&P 500 Index slipped 0.1 percent at 2,296.70. Earlier, the measure rose past 2,300 for the first time.
Oil gained about 2% on optimism about OPEC output cuts
Gold futures fell 0.7 percent to settle at $1,192.50 an ounce in New York. It was the third straight loss for the longest slump since Dec. 22. The metal touched $1,186.60, the lowest for a most-active contract since Jan. 11.
Copper for delivery in three months fell 1.6 percent to $2.668 a pound in New York.