In Asian Equity Markets stocks posted gains on Wednesday as sentiment held solid despite a nuclear weapons taunt by President Donald Trump on Twitter directed at North Korean leader Kim Jong-un. MSCI’s index of Asia-Pacific stocks outside Japan rose 0.4 percent, having jumped 1.4 percent on Tuesday in its best performance since last March. In Australia, the S&P/ASX 200 rose 0.13 percent, while markets in Tokyo were shut for a holdiay. In Greater China, the Shanghai Composite rose 0.91 percent and the Hang Seng Index gained 0.33 percent. Investors also piled into emerging market trades, with Philippine stocks at a record decade-high.

In Currency Markets the euro eased on Wednesday to take a breather from a rally prompted by optimism over the euro zone’s economy and expectations the European Central Bank will wind down its bond-buying stimulus in 2018. The euro fell 0.1 percent to $1.2048. The currency hit a four-month high of $1.2081 on Tuesday, marking a gain of roughly 3 percent from a mid-December trough and bringing it close to a September high of $1.2092, the currency’s highest level since early 2015. The single currency has already reached a two-year high on the yen at 135.40, while the dollar lagged far behind at 112.32 yen. The Canadian dollar last stood at C$1.2521 per U.S. dollar. The dollar index held steady at 91.902, having pulled up from Tuesday’s 3-1/2 month low of 91.751.

In Commodities Markets  oil prices were stable on Wednesday, not far off mid-2015 highs reached the previous session, as strong demand and ongoing efforts led by OPEC and Russia to curb production tightened the market. U.S. West Texas Intermediate crude futures were at $60.40 a barrel, up 3 cents from their last close, and not far off the $60.74 June 2015 high reached the previous day. Brent crude futures were at $66.55 a barrel, down 2 cents but still not far off the $67.29 May 2015 high from the previous day.  Spot gold fell 0.4 percent to $1,312.71 an ounce and spot silver fell 0.5 percent at $17.10 an ounce, after hitting a six week high at $17.21 earlier in the session. Spot platinum fell 0.8 percent to $935.74 an ounce and spot palladium fell 0.6 percent to $1,086.30 an ounce.

In US Equity Markets  stocks rose in the first session of the new year and the Nasdaq closed above 7,000 for the first time on Tuesday as investors were optimistic that 2018 will bring more gains for the market. The Dow Jones Industrial Average rose 0.42 percent, to 24,824.01, the S&P 500 gained 0.83 percent, to 2,695.79 and the Nasdaq Composite added 1.5 percent, to 7,006.90. The technology index added 1.4 percent on Tuesday and the S&P consumer discretionary index was up 1.5 percent, helped by a gain in Amazon of 1.7 percent. J.C. Penney, Nordstrom and Kohl’s climbed after a bullish Citigroup note on the retail sector detailed benefits from the corporate tax cuts. Shares of insurer Allstate were down 2.7 percent following a brokerage downgrade.

In Bond Markets U.S. Treasury yields rose on Tuesday on strong Wall Street gains and in line with European government yields after a European Central Bank official said the ECB’s massive bond purchase program may not be continued later this year. The benchmark 10-year Treasury yield was up 5 basis points at 2.460 percent following a 2 basis-point decrease last year. The five-year yield ended at 2.246 percent after touching its highest level since April 2011 earlier in the day, while the two-year yield retested a nine-year peak of 1.927 percent. Yields on 10-year German paper climbed 4 basis points to a two-month top at 0.467 percent, which in turn pushed up rates across the European periphery. Spanish yields, for instance, have risen 16 basis points in just three sessions to reach 1.616 percent.

Economic Calendar

• 10:30 GMT+0 UK Construction PMI
• 16:00 GMT+0 US ISM Manufacturing PMI
• 20:00 GMT+0 US FOMC Meeting Minutes