Morning Update – 04/12/2017 – by Arjun Lakhanpal

December 4, 2017 by

Morning all.. Wall St recovered some of its losses after ABC suggested Flynn would testify against Trump but still managed to close down 0.2%. The S&P 500 fell as much as 1.6 percent at one point. Later, ABC changed their story and Trump’s tax bill passed so this morning we have seen US futures surge higher again but the Nikkei closed down 0.5%.  Oil continued to trade around $58 a barrel and US 10yr yields jumped to 2.4% taking USDJPY back to 113.00. However, US yield curve remains very flat. Some suggest the tax bill will boost economic growth by around 0.3 percentage point for next year and 2019. The median estimate of economists surveyed by Bloomberg is for the U.S. economy to expand 2.5 percent next year and 2.1 percent in 2019, after 2.2 percent growth in 2017. This morning we see the bounce in US futures with S&P up 16 points. Later today, euro-area finance ministers discuss the future of the region, vote for a new president, and debate Greece’s bailout review in Brussels. The European Commission College of Commissioners discusses Brexit on Wednesday and will likely make its recommendation on whether sufficient progress has been made to move negotiations onto the future relationship. Countries setting monetary policy this week include Australia, Brazil, Canada, India and Poland. This morning we get Spanish unemployment, UK Construction PMI and EU PPI data.. Good luck..