One Minute Macro Update
The key events overnight shaping this morning's futures picture revolve around the re-revised Q3 US GDP number (consensus of 2.8%), rumors of China buying Portuguese bonds (again), European spreads which are once again widening (here we go again again), and a surge in Japanese imports resulting in a cut to Japan's GDP forecasts.
US: Futures mixed in the early going as the market awaits GDP numbers. Treasuries and the USD have sold off a bit on anticipation of an upward growth revision. November home sales round out the economic calendar for the day as the truncated light volume week winds down tomorrow.
Europe: Rumors of Chinese involvement in the Euro bond market are still being faded as official details of action continue to be scarce. Chinese central bankers have been reported as saying that they have no comment on plans to purchase bonds. Belgium’s Finance Minister reportedly saying that budget moves are necessary to avoid the countries financing from being targeted in 1Q11. Sov spreads generally moving wider by a small bit every day. Yesterday’s news on the EFSF/EFSM issuance was seemingly a non-event judging by the market reaction, but we do not believe the actuality of issuance will be viewed as benignly. See our comment yesterday for our complete thoughts.
Asia: Japan cutting GDP forecasts on stronger JPY leading to diminished export activity. Australia experiencing more signs of real estate depreciation according to the Real Estate Institute of Australia.
Via Brian Yelvington of Knight Capital
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