WORLD ECONOMIC & MARKET DEVELOPMENTS
GLOBAL MARKETS: The USD extended its recent gains against the majority of its currency peers amid increased optimism that tax reform legislation could become law by year-end. Meanwhile, the Congress passed late on Thursday a two-week spending bill to keep the government funded until December 22. Elsewhere, the GBP moved higher on optimism about the process of Brexit negotiations after European Commission President Jean-Claude Juncker, UK Premier Theresa May, the DUP party and the Irish government agreed on a compromise position on the thorny issue of the Norther Ireland border. Focus today is on the US non-farm payrolls report for November where consensus is for a 198k rise in the headline. However, the headline is likely to have less impact than the wage data which have the potential to trigger a readjustment in 2018 Fed tightening expectations as a December hike is viewed by market participants as a done deal. Market consensus is for an acceleration in average hourly earnings to 2.7%YoY from 2.4%YoY in October.
SOUTH EASTERN EUROPE
SERBIA: The NBS left the key policy rate unchanged at 3.5% in line with analyst expectations.
Viewers can log herebelow and read the full report: Daily Overview December 8 2017