Market volatility remained elevated as concern simmer that central banks were not keeping up with global economic growth.
Senate passed a two-year budget deal in the wee hours of Friday morning; after the government was forced into a technical shut down at midnight due to a political stunt by Sen. Rand Paul (R-KY); Government would reopen once the bill cleared the House in the predawn hours.
Senate approved a far-reaching budget deal that would reopen the federal government and boost spending by hundreds of billions of dollars.
Bank of Canada (BOC) Wilkins: high household debt was the largest vulnerability to the Canadian economy.
Mexico Central Bank raised the Overnight Rate by 25bps to 7.50% (as expected) for its 12th hike in the current tightening.
European Indices trade mostly lower but off the session lows after a rebound in US Futures overnight after sharp falls yesterday. Increased outlook for higher rates in the UK weigh on the FTSE, as the index under performs. Ont he corporate front Maersk trades lower after Q4 results; Ceconomy also trades lower after a fall in profits. To the upside Trinity Mirror outperforms after its trading update, Flow Traders trades over 10% higher after strong y/y growth. In the M&A space Hogg Robinson trades sharply higher after receiving a bid from American Express Global, representing a 54% premium to prior close. Looking ahead earners include PG&E, Tenneco and Moody's.
Risk aversion sentiment remained on the front burner but the major FX pairs stayed locked within recent ranges. The USD maintaining its recent strength as some analysts believe the Fed might be behind the curve on rates. One analyst noted that given how sensitive markets were to a slightly hawkish BoE yesterday, one can only imagine the turmoil on Wednesday next week if US CPI comes in ahead of expectations