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FTSE outperforms as oil, metals recover
Asian currencies were better bid as Chinese officials announced to take further stimulus measures in terms of fiscal and monetary policies. The optimism gave a boost to commodity and related assets. Shanghai’s Composite recovered earlier losses in the session and traded 0.26% higher, Hang Seng gained 0.18%. Oil rebounded to $36.

The FTSE outperforms its European peers as energy and mining stocks ride on the back of a bull.

BG Group is the top gainer in London (+2.93%) following a broker report bringing up the oil prices as a barrier to Shell-BG deal. Oil cheapened by more than 40% since the announcement in April and the takeover may not go through as Shell’s power to seal the deal tanks alongside the oil prices. BG and Shell shareholders will meet on January 27th for approval. Should the debasing in the oil market continue, the scepticism and the uncertainty could further mount. Investors that have moved capital from BG to Shell stakes could partially swing back to their BG holdings.

ITV traded 1% down as Comcast rejected news on talks to buy ITV.


US dollar softens as Fed-hawks retreat

The US dollar is paring the post-FOMC gains as the market doesn’t see another rate hike until April 2016 the earliest, meaning that the projection of four Fed hikes (of 25bp to sum to 1%) is being somewhat pushed back due to a gloomy macroeconomic picture. The US GDP, core PCE and personal consumption (3Q third read) is due today, and will either give reason to the Fed, or revive further scepticism regarding the US’ economic health.

Thin liquidity conditions could be a source of higher volatility as volumes decline before Christmas holidays.
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