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 Since the recent US limitations on Chinese access to critical semiconductor and AI components weren’t as harsh as anticipated, most Asian markets witnessed gains overnight, especially in the technology sector. While stock indexes rose in a number of nations, such as Australia and Japan, Chinese equities initially dipped after the Yuan fell to its lowest level versus the dollar in a year because of worries about a faltering economy and rising tensions with the US. After the tech-focused Nasdaq 100 rose more than 1% on Monday and the S&P 500 set its 54th closing record of the year, US futures stayed steady overnight, leading to net gains across Asian markets heading into the close. Overall, investors were relieved that the Biden administration’s new tech export restrictions on China were less severe than initially proposed, which may have had a more substantial effect on major Chinese companies. This helped to boost confidence for Asian markets. However, after disappointment over Chinese authorities’ decision to withhold the results of a crucial conference that many expected would yield fresh policy insights, investor attitudes towards China’s economy remained subdued. After plunging as much as 1.1% the day before due to political unrest in France, which further taxed bonds and stocks, the Euro held steady. France remains the focal point of Europe’s concerns on Tuesday, as the government is nearly certain to fall after both the right and left wings have put forward no-confidence motions. The tipping point was Prime Minister Michel Barnier’s effort to push a social security bill through parliament without a vote, setting the stage for Wednesday to potentially mark the first French government ousted by a no-confidence vote since 1962. This situation deepens Europe’s political turmoil as the year concludes, with Germany also facing snap elections following its government’s collapse, coinciding with Donald Trump’s anticipated return to the White House, which poses a threat of significant tariffs on the region for not purchasing enough American vehicles and agricultural products. However, France can at least find some solace in the warming relations with the President-elect. Trump has praised the reconstruction of the Notre Dame Cathedral and plans to attend its reopening on Saturday, his first foreign visit since winning the election.There are no macro events on the European economic data calendar today, but an event in Milan will broadcast a pre-recorded interview with ECB board member Piero Cipollone. Fed speakers today include Chicago Fed President Austan Goolsbee and Fed Governor Adriana Kugler, who will be speaking in Chicago and Detroit, respectively. The key focus of the day will be the U.S. JOLTS job openings report, which is a favorite among Fed officials and serves as a precursor to the crucial monthly payrolls report due on Friday. Expectations for a quarter-point rate cut on December 18 have increased, now sitting at 75% according to CME’s FedWatch Tool, up from 66% the previous day and 52% a week ago.
 Overnight Newswire Updates of Note

          (Sourced from reliable financial news outlets)
 FX Options Expiries For 10am New York Cut (1BLN+ represents larger expiries, more magnetic when trading within daily ATR)

CFTC Data As Of 29/11/24

Technical & Trade ViewsSP500 Bullish Above Bearish Below 6000

EURUSD Bullish Above Bearish Below 1.0450

GBPUSD Bullish Above Bearish Below 1.26

USDJPY Bullish Above Bearish Below 154

XAUUSD Bullish Above Bearish Below 2600

BTCUSD Bullish Above Bearish Below 92000

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