Here are the latest developments in global markets:
Forex: The dollar index moved higher to a fresh two-week high of 93.73 (+0.13%) as a layer of uncertainty was removed after the US Senate Republicans and the House of Representatives agreed yesterday to continue talks on tax reforms. However, risks remain on the side of the government budget which expires on Friday midnight. Dollar/yen was last seen at 112.70 (+0.37%), dollar/swissie was trading at a two-week high of 0.9922, while dollar/loonie was hovering around 1.2826 (+0.30%). The euro and the pound were pressured by a stronger dollar as readings on the UK house prices and final Eurozone GDP growth figures came in as expected. The kiwi, remained the worst performers of the day.
Stocks: European equity indices surged as tech shares recovered after a strong sell-off in previous days, while a rebound in tech stocks was also noticed in Asian markets and Wall Street earlier. The benchmark STOXX 600 was 0.36% up at 1040GMT, the German DAX 30 performed the best among its European peers, surging by 0.64% and the French CAC 40 gained 0.34%. The British FTSE 100 posted gains for the second consecutive session (+0.09%), driven by telecommunication services, while a weaker pound provided further support. US futures were heading lower.
Commodities: Oil futures climbed during early European trading hours as the market become oversold. WTI crude jumped by 0.35% on the day to $56.20 per barrel and Brent rose by 0.47% to $61.60. Gold tumbled by 0.68% to $1,255.00 per ounce on the back of a rising dollar.
Day ahead: Initial Jobless claims & Canadian PMI watched; US taxes, government budget & Brexit in focus
US and Canadian data will be for once again under the spotlight for the remainder of the day. But any updates on the reconciliation of the US tax bill and the settling of the government budget will be of main importance. In addition, investors will also weigh heavily any news on Brexit developments as the time runs out for the UK Prime Minister, Theresa May, to break the deadlock before the EU summit next week.
Initial Jobless claims out of the US at 1330GMT will likely show that applications for unemployment benefits increased by 240,000 in the week ending December 1, slightly above the 238,000 seen in the preceding week. Besides that, investors will also keep a close eye on the 4-week average gauge which adjusts for volatility, as the measure has been smoothly rising since the beginning of November. October's consumer credit will attract some attention as well at 2000GMT.
In Canada, reports on building permits for the month of October will be available at 1330GMT, with analysts predicting the gauge to halve to 1.5% m/m from 3.8% in September. At 1500GMT, the Richard Ivey School of Business will publish Canadian PMI readings for December. Recall that in November, Ivey PMI hit a 1-½ year-high at 63.8.
In terms of public appearances, the ECB Chief, Mario Draghi, will participate in a press conference by the Bank of International Settlements at the European Central Bank in Frankfurt at 1600GMT.