U.S. equities have extended their rebound
U.S. equities have extended their rebound in line with global gains amid progress in Beijing trade talks, which wrapped up today. Both Fed's Bullard and Bostic were relatively dovish, coming just ahead of the FOMC minutes of the December hike. The battle over funding for the "steel slats" continued, though with little sign of compromise and emergency funding not ruled out. Ratings agency Fitch warned of a possible U.S. debt downgrade if the budget impasse drags on. According to Nikkei News, Apple cut iPhone production by 10% on top of previous warnings, though CEO Cook gave a robust defensive of his firm's longer-term perspective. The Dow is 143-points firmer, S&P gained 12-points and NASDAQ is 35-points higher ahead of the opening clang. Asia was well bid with Japan's N-225 +1.1%, the HK Hang Seng +2.2% and China CSI +1%, while Europe followed suit with gains of 1.0-1.3% on the major bourses. Crude oil rallied over $51 on WTI after positive trade talks and a big API draw, helping give energy sector stocks a leg up. More Fedspeak from dove Evans and hawk Rosengren is due, along with the $24 B 10-year note auction results.