NEW YORK: There are no corporate bond deals expected on Wednesday with the UK and other European markets still on holiday and many US market players still away from their desks.
Overnight, Asian activity was muted. China Development Bank was the main issuer, pricing China's longest dated subordinated bonds a CNY10 billion 50 year non-call 45 tranche at 5.60 percent, the lower end of 5.40 percent -5.90 percent guidance.
US stock index futures were higher at 8.00 am, suggesting the S&P 500 may halt its worst two-day drop since mid-November, ahead of the resumption of 'fiscal cliff' negotiations.
President Barack Obama has cut short his vacation to deal with the crisis, the White House said on Tuesday.
At 8.00 am, S&P 500 futures were up 3.50, Dow futures were up 27 points and Nasdaq 100 futures were up 7 points.
Investors are awaiting housing data for signs of improvement in the economy with the S&P Case-Shiller Home Price Index for October expected at 9 am.
IFR economists are expecting a reading of 4.0 percent, up from 3.0 percent in the previous month.
BOJ DEBATED BUYING ASSETS OPEN-ENDEDLY IN NOV-MINUTES:
Bank of Japan policymakers debated various options, such as an open-ended commitment to buy assets, as early as in November, minutes of the bank's rate review showed, a sign they were already leaning toward action back then on the worsening economic outlook.
NEW JAPAN PM ABE SAYS WILL PURSUE BOLD MONETARY POLICY:
Japanese Prime Minister Shinzo Abe said on Wednesday his government will pursue bold monetary policy, flexible fiscal policy and a growth strategy to encourage private investment.
"Japan won't have a future and won't be able to restore fiscal health without a strong economy," Abe told a news conference after taking office as the country's seventh prime minister in six years.
CHINA EYES MODEST RECOVERY, RISING RISKS - VICE FINMIN:
China faces rising risks in its banking sector and pressure on government revenue in 2013 while economic recovery could be hampered by weak external demand and domestic constraints, Vice Finance Minister Li Yong said in comments published on Wednesday.
OBAMA, CONGRESS SET FOR ONE LAST EFFORT ON FISCAL CLIFF:
President Barack Obama is due back in Washington early Thursday for a final effort to negotiate a deal with Congress to avert or at least postpone the "fiscal cliff" of tax increases and government spending cuts set to begin next week.
No specific bill dealing with the cliff was on the schedule of either the US Senate or House of Representatives, which are expected to return on Thursday after the holiday break.
Investors are closely watching the talks, concerned that going over the cliff could throw the economy into recession.
Center>Copyright Reuters, 2012
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