Headlines:
- US futures keep higher on hopes of end to government shutdown
- Fed's Daly says need to keep an open mind about further rate cuts
- More from Fed's Daly: We are likely experiencing a negative demand shock
- ECB's de Guindos: We firmly believe that current interest rate level is appropriate
- BOJ should refrain from hiking rates in December, says Takaichi's economic adviser
- Japan prime minister Takaichi says hopes for BOJ to guide monetary policy appropriately
- Eurozone November Sentix investor confidence -7.4 vs -4.0 expected
- SNB total sight deposits w.e. 7 November CHF 460.0 bn vs CHF 470.5 bn prior
Markets:
- AUD leads, JPY lags on the day
- European equities higher; S&P 500 futures up 0.9%
- US 10-year yields up 3.9 bps to 4.131%
- Gold up 2.5% to $4,098.76
- WTI crude up 0.4% to $60.05
- Bitcoin up 1.1% to $105,912
There wasn't too much in terms of headlines in European morning trade as we await the US Senate to reconvene later at 1600 GMT to further work out the end to the government shutdown. Hopes are rising since the end of last week on the potential for that and that's keeping risk trades optimistic to start the new week.
On the one hand, the shutdown ending could see the return of US economic data which might just bolster Fed rate cut odds amid softer labour market developments. On the other, there's also relief on funding/liquidity pressures amid the shutdown so that's also a risk positive overall.
US futures are holding well higher with European indices also rallying back after having missed out on the late recovery in Wall Street on Friday. S&P 500 futures are up 0.9% while major indices in Europe are posting gains of well over 1% on the day.
Amid the better risk mood, the aussie is leading gains in the major currencies space with AUD/USD bouncing back by 0.6% to 0.6530. Meanwhile, the yen is the laggard and isn't helped by Japan prime minister Takaichi spreading her dovish fiscal wings in pushing for stimulus/spending measures. USD/JPY is holding up 0.5% to just above 154.00 on the day.
As for the dollar itself, it is keeping more mixed and a little steadier but mostly down against the commodity currencies. USD/CAD is also down 0.3% in nearing the 1.4000 mark.
With risk trades pushing up, gold is also finding dip buying appetite as traders step back in to push precious metals back up to start the week. Gold is now bordering on $4,100 and pushing to two-week highs with silver also up over 3% to just above the $50 mark currently.
