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DAILY MARKET OVERVIEW
Today's Top Market Headlines – Dec 6, 2016
European markets set to open higher; Monte Dei Paschi bailout in limbo

Bourses in Europe are seen higher on Tuesday as concerns over political instability ease and investors focus on the upcoming meeting of the European Central Bank.
The German DAX is seen 16 points higher at 10712.7; the CAC should open 10 points higher at 4584.5 and the FTSE is set to open 2 points higher at 6749.3.
Italian Prime Minister Matteo Renzi has agreed to delay its resignation until the country’s 2017 budget is approved, easing the risks of early snap elections following the government’s defeat in a referendum. Expectations that early elections would be averted helped controlling a selling-off on Monday.
However, risks to the banking system continue. The Financial Times reported that Italy’s Banca Monte dei Paschi di Siena has been told to prepare for a state bailout on reports that a key investor is reconsidering whether to contribute to a 5 billion euro recapitalization.
Analysts are expecting ECB President Mario Draghi to announce Thursday an extension to the bank’s trillion-euro bond-buying scheme, at least by another six months.
Meanwhile, European finance ministers are gathering in Brussels Tuesday morning. In the U.K., the government continues with an appeal against a High Court ruling stating that it needs parliamentary approval before triggering Article 50 of the EU and start Brexit negotiations with Europe.

Asia shares higher as investors shake off Italian referendum concerns

Asian markets bounced back on Tuesday with the central bank in Australia holding its benchmark rate steady and as market uncertainty faded following the failed referendum in Italy.
The Reserve Bank of Australia, in its last monetary policy review for the year, held its cash rate at 1.5 percent as expected. The Australian central bank also said that a rising Aussie dollar might pose risks to the country’s economic transition, as it moves away from a resource-led economy.
Australia’s ASX 200 closed up 0.52 percent or 28.26 points at 5,428.7. Its industrials sub-index rose 1.17 percent while its materials sub-index was up 0.66 percent.
The Australian dollar fell to $0.7448 against the dollar as of 2:00 pm HK/SIN.
The Japanese benchmark Nikkei 225 closed 0.47 percent or 85.55 points at 18,360.54. The yen strengthened against the dollar, trading at 113.9 as of 2:01 pm HK/SIN, after reaching 114 last week.
The Kospi gained 1.44 percent as South Korea’s finance ministry said it would assign 68 percent of its 2017 budget to be spend in the first half of the year to boost growth.
In other news, nine of South Korea’s top conglomerate leaders face a televised interrogation in parliament.

Euro steadies after short-covering rally, eyes on ECB and Italy

The euro steadied on Tuesday, having bounced from a near 21-month low set the previous day after Italian Prime Minister Matteo Renzi’s loss in a referendum over constitutional reform, an outcome that traders had widely expected.
Renzi announced on Monday that he would resign after the resounding defeat in the referendum.
Still, while Renzi’s resignation could open the door to an early election next year and the possibility of the anti-euro 5-Star Movement gaining power, many investors and analysts think it more likely that a caretaker government will be put in place until an election in 2018.
The euro eased 0.1 percent to $1.0757. On Monday, it ended up gaining 1 percent on the day, having bounced from a low of $1.0505 set in Monday’s early Asian trade.
Analysts said the euro was buoyed by relief over the lack of any immediate sign Italy would head toward an early election after Renzi’s resignation.

Source: http://www.cnbc.com/