- US trade deficit dips to $39.9 bln in December from $41.6 bln in November
- China should get assurances from US on Treasury debt: government advisor
- EU report says banks exposed to over $2o bln in toxic assets
- EU’s Almunia: Single EU bond market desirable, spreads within Europe exaggerated
- US Senate and House reach compromise on $790 bln stimulus package
- Canada records first trade deficit since 1976
- ECB’s Stark: Room for a March rate cut
US markets opened firmer on Wednesday as risk aversion eased after yesterday’s negative reaction to the lack of specifics in the US bank bailout plan. equities bounced early by about 1%, faltered at midday and rebounded again in the afternoon after the stimulus package was trimmed to a mere $790 bln.
Most await tomorrow’s US jobless claims and retail sales. As we saw last Friday, passing event risk, especially when bad news is priced in, can unleash a relation trade, at least for a short period of time.
EUR/USD faded to 1.2835 before bouncing to 1.2900 after the stimulus. Cable bounced from 1.4316 to 1.4375 in the afternoon. USD/JPY barely budged in a 90.20/70 range for much of the US session.