Risk assets supported by Wall Street gains


SYDNEY, Dec 8 (IFR) - Asian risk markets should derive support from a constructive overnight session on Wall Street ahead of today's November non-farm payrolls report. 

Growing hopes that Congress will reach a final tax-cut agreement before the self-imposed December 22 deadline underpinned sentiment. Rallying Facebook and Alphabet shares helped the technology-heavy Nasdaq Composite outperform with a 0.54% daily gain, while the S&P 500 and Dow Jones both added 0.29%. 

Long-dated Treasuries lost ground on Thursday after a lower-than-expected initial claims count of 236,000 pointed to a tightening labour market and the potential for an eventual spiral in wage-price inflation. US two-year yields eased 1bp to 1.80%, while 10-year and 30-year yields rose 2bp and 3bp to 2.36% and 2.76%, respectively. 

The FTSE 100 moved in the opposite direction with a 0.37% slippage as the UK benchmark fell to a 10-week low on lower energy stocks and sterling's recovery amid hopes for a Brexit-talks breakthrough. 

It was a similar story in the European rates market where UK 10-year yields rose 2bp to 1.25%, whereas German, Spanish and Italian 10-year yields eased 1bp, 1bp and 5bp, to 0.30%, 1.43% and 1.68%, respectively. 

Europe's main and crossover CDS spreads narrowed 0.5bp and 1.5bp to 48bp and 234bp before the US investment-grade and high-yield CDS spreads ended unchanged and 0.5bp wider at 52bp and 321bp, respectively. 


, acting through its DIFC branch, rated Baa3/BBB- (Moody's/S&P), issued a US$500m 3.8% 10-year 144A/Reg S bond at Treasuries plus 150bp, 20bp inside initial price talk. 

China's raised US$100m from 7.95% Reg S three-year non-call one-year non-put one-year senior secured note, half the expected amount. The note, which is expected to score a AA+ rating from Dagong, priced at 98.570 for a yield of 8.5%, in line with guidance. 

UK-listed mobile network operator , (Baa1/BBB+/BBB+), is due to price a dual-tranche, five-year and 10-year, Kangaroo bond offering today via joint lead managers NAB, RBC Capital Markets and UBS. The five-year was being marketed at asset swaps plus 110bp area and the 10-year at asset swaps plus 170bp area. 

Australia's (A3/BBB/A-) is expected to issue a three-tranche senior unsecured Australian dollar bond today with joint leads ANZ, CBA, Macquarie, NAB and Westpac. For the fixed-rate and floating-rate five-year non-call four notes, guidance is asset swaps and three-month BBSW plus 120bp area. For the fixed-rate 10-year note, price talk is asset swaps plus 170bp area. 

This article appears in: Stocks , World Markets , Politics

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