Overnight market activity constrained, but... - ANZ

Analysts at ANZ noted the the activity overnight remained constrained as financial markets seem to be at somewhat of a crossroads in the short term. 

Key Quotes:

"That may just be position congestion given the sell-off in bonds, rally in the dollar and appreciation in equities since November 9. But a couple of things are noticeable. Despite the hawkish tilt to FOMC members speeches, the surge in the December NFIB index and the generally optimistic picture that actual and surveyed data have been indicating – not just in the US, but globally – expected price action is not following through."

"Equities nonetheless remain the favoured asset class and continued to eke out gains overnight. The S&P 500 was up 0.4% at the time of writing, the DAX finished up 0.2% and the FTSE continued to enjoy sterling’s slide rising 0.5%."

"A total of 80% of FTSE 100 earnings are overseas. The yield on the US 10-yr note was little changed at 2.38% and oil was down 1.0% (WTI $51.40/bbl) amid speculation of rising US supply and compliance concerns over promised supply cuts elsewhere."