20131210

Good morning,

Risk taking in the EU and US enjoyed another positive round on Monday in the aftermath of the US job report on Friday, but Asia was not able to follow suit as a result of lower confidence indices in Australia and Japan as well as a Chinese Industrial Production which was more or less as expected. USD kept on the offer against most peers, except the AUD and JPY. EUR/USD has sustained above the 1.37-figure seeing offers around 1.3750 abd Cable is at new December highs around 1.6450. Global yields moved a tad lower despite FOMC voting member Bullard indicating recent US jobs data support tapering of asset purchases

The monthly German Industrial production and the EU Sentix confidence fell short of expectations, but decent growth figures from peripheral Europe counterweighted these events and the DAX closed up 0.3%, while CAC and FTSE took home 0.1% each. In the US, the S&P and Nasdaq gained 0.3%, while the Dow Jones just managed to close in positive territory.

Today, the focus will be on the UK Industrial Output figures at 09:30GMT, where markets are expecting a 0.4% increase in October against 0.9% in September following the lower levels of PMIs. At 12:00GMT, the markets will turn their attention the speech from Draghi in Rome which could cause some stir in the markets.

Have a nice day.