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US Treasury Yields Little Changed after Congress Passes Tax Bill

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U.S. government debt yields were little changed on Thursday, as investors priced in the latest news coming from the U.S. economic sphere.

The yield on the benchmark 10-year Treasury note dropped to 2.486 percent, while the yield on the 30-year Treasury bond was lower at 2.84 percent. Bond yields move inversely to prices.

The yield curve continued to flatten, with the 3-year Treasury note yield approaching two percent.

A major obstacle surrounding overhauling the U.S. tax code was conquered after House Republicans voted to approve tax reform, consequently meaning that the legislation can be sent to President Donald

Trump's desk for a signature by Christmas.

This follows after Republicans had to fix the bill, as a result of violations concerning the Byrd rule.

The overhaul is anticipated to become law for next year, with the bill set to reduce corporation tax rates while temporarily trimming the tax burden for the majority of people.

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Japan Housing Starts Fall Less Than Expected In November

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Japan's housing starts declined at a slower-than-expected pace in November, data from the Ministry of Land, Infrastructure, Transport and Tourism showed Wednesday.

Housing starts fell 0.4 percent year-on-year in November, much slower than October's 4.8 percent decrease.

That was also below the 2.6 percent drop economists had forecast. Moreover, it was the fifth successive monthly fall.

Annualized housing starts climbed to 951,000 from 933,000 in the previous month. It was forecast to rise to 934,000.

Data also showed that construction orders received by big 50 contractors surged 20.5 percent yearly in November, following a 6.7 percent increase in October.

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COLOMBIA: Hass Avocado Exports To The U.S. Are On Track, Producers Say

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Colombian exports of Hass avocado to the United States are still ongoing, according to a work plan signed by CorpoHass and U.S. sanitation authorities.

The Colombian Agricultural Institute is moving forward with a program to eradicate pests from Hass avocados in 21 municipalities from seven Colombian states and, in January, the country should export the fruits from the Antioquia state.

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US Treasury Yields Drop as Consumer Morale Declines

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U.S. government debt yields fell on Wednesday, after consumer morale dropped in December while the yield curve continued to flatten.

The yield on the benchmark 10-year Treasury note slipped to 2.423 percent, while the yield on the 30-year Treasury bond was lower at 2.753 percent. Bond yields move inversely to prices.

Consumer confidence declined in December, down from 17-year highs in November. The Conference Board's measure of consumer confidence dropped to 122.1 in December.

The Treasury Department auctioned $34 billion in 5-year notes at a high yield of 2.245 percent. The bid-to-cover ratio, an indicator of demand, was 2.36.

Indirect bidders, which include major central banks, were awarded 58.4 percent. Direct bidders, which includes domestic money managers, bought 7.9 percent.

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South Korea Inflation Gains 0.3% In December

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Consumer prices in South Korea were up 0.3 percent on month in December, Statistics Korea said on Friday.

That follows the 0.7 percent monthly decline in November.

On a yearly basis, inflation advanced 1.5 percent - up from 1.3 percent in the previous month.

Core CPI, which excludes food prices, gained 0.2 percent on month and 1.5 percent on year in December after slipping 0.3 percent on month and rising 1.4 percent on year a month earlier.

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Thailand Manufacturing Sector Expands In December

Thailand's manufacturing activity expanded marginally in December, survey data from IHS Markit showed Wednesday.

The seasonally adjusted Nikkei Manufacturing Purchasing Managers' Index rose to 50.4 in December from 50.0 in November. Any reading above 50 indicates expansion in the sector.

Among components, growth in both output and new orders were key drivers for the upturn, but employment and input inventories fell further.

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Eurozone Manufacturing Sector Growth at Record High in December

Eurozone factories finished 2017 by growing at their quickest pace in over two decades, which indicates a much better than expected year for businesses in the bloc.

The eurozone manufacturing purchasing managers' index in December came in at 60.6, its highest level since surveys began in mid-1997, according to latest figures shown. Any figure above 50 indicates growth over the month.

The figures confirmed earlier “flash” estimates, which implied the sector had marked its best annual performance on record, while new national-level data pointed to broad-based growth across the continent.

Businesses in Germany, Ireland and Austria all posted record growth, while Greece faced its best results for almost a decade.

Eurozone factory activity is surpassing its peers, including Britain. That has added to expectations that the European Central Bank, which this month will reduce its monthly bond purchases, will shutter the program later this year.

The factory output index, which feeds into a broader set of data including services, increased to 62.2 from 61.0 in November. That was its highest in more than 17 years and a reading surpassed only once in the survey's over two decades of history.

The ECB currently expects the eurozone economy to have grown by 2.4 percent in 2017, compared with estimates of just 1.7 percent at the beginning of 2018.

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China Services PMI Climbs To 53.9 In December - Caixin

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The services sector in China continued to expand in December, and at an accelerated pace, the latest survey from Caixin showed on Thursday with a PMI score of 53.9.

That's up from 51.9 in November, and it moves further above the boom-or-bust line of 50 that separates expansion from contraction.

Also, the composite index came in at 53.0 - up from 51.6 in the previous month.

Individually, there was a solid increase in services activity, accompanied by faster growth in manufacturing output.

Employment remained broadly stable.

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Tesla Falls on Further Delay of Model 3 Production Target

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Tesla Inc. pushed back a production target for its new Model 3 sedan for the second time, disappointing investors and causing its shares to slide.

The electric-car maker now projects completing the production of 2,000 Model 3s per week by the end of the first quarter, postponing plans to hit a milestone by another three months. Tesla said it would likely assemble around 5,000 vehicles per week by the end of the second quarter.

The announced delay in production targets caused shares of the company to fall in extended trading. The stock fell by as much as 2.7 percent after the end of regular trading to $308.80.

The Model 3 is seen as a key to Tesla's long-term success, as it is the most affordable among its cars to date and is the only one with the capacity to transform the niche carmaker to a mass producer amid a number of competitors who are making their push into the electric vehicle market.

Assembling the car in an efficient manner and delivering it without any setbacks to customers is also critical as the company faces high cash burn. The company burned through $1.1 billion in capital expenditures in its third quarter and said in November that Q4 capex would be around the same figures in the previous quarter. The delays also increases the risk that reservation-holders would junk their orders.

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Australia Has A$628 Million Trade Deficit

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Australia had a seasonally adjusted merchandise trade deficit of A$628 million in November, the Australian Bureau of Statistics said on Friday.

That was well shy of forecasts for a surplus of A$550 million following the downwardly revised (302 million shortfall in October (originally a surplus of A$105 million).

Imports were up A$467 million or 1.0 percent on month to A$32.481 billion in November.

Consumption goods rose A$213 million (3 percent), while capital goods rose A$190 million (3 percent) and intermediate and other merchandise goods rose A$81 million (1 percent).

Non-monetary gold fell A$100 million (25 percent) and services debits rose A$83 million (1 percent).

Exports were roughly flat at A$31.853 billion, up A$141 million from a month earlier.

Non-rural goods rose A$394 million (2 percent) and rural goods rose A$25 million (1 percent), while non-monetary gold fell A$425 million (23 percent).

Net exports of goods under merchanting remained steady at A$53 million. Services credits rose A$147 million (2 percent).

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U.S. Yields Rally as Investors Eye Jobs Data

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U.S. government bond yields edged higher, driving Treasury bond prices lower, as investors weighed in data on jobless claims and private-sector payrolls a day before the release of the official December U.S. jobs report.

Yield on the ten-year Treasury note trimmed an earlier gain to close at 2.452 percent, rising by around 0.7 basis point, while the two-year Treasury note yield advanced 2 basis points to 1.955 percent. The yield on the 30-year Treasury bond advanced marginally to 2.783 percent.

On Wednesday, Treasury yields retreated after minutes from the Federal Reserve's December meeting underlined divisions over the pace of future monetary policy tightening.

The following day, attention was diverted towards the labor market as investors priced in the private-sector employment data from payroll-services company ADP and stood by for data on weekly jobless claims, with yields continuing their rally after a solid reading from ADP.

ADP reported private-sector payrolls increased 250, 000 in December. First time jobless claims in the week ended December 30 came in at 250, 000 versus a revised 248, 000 a week earlier. The figure is higher than the 240, 000 estimated initial claims.

But markets are mostly focused on the December jobs to be released in Friday. Friday's jobs data is expected to show an increase of 198, 000 in December nonfarm payrolls after a 228, 000 increase in November. The jobless rate is estimated to remain steady at 4.1 percent, while average hourly earnings are projected to increase 0.3 percent after a 0.2 percent in November.

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Asian Stocks Rally as Investors Await Corporate Earnings

Asian shares edge up on Monday on the back of solid gains in Wall Street from the last season. Due to the lack of economic data releases during the session, majority of investors are on standby for earnings releases from regional corporates later this week.

Australia's S&P/ASX 200, rising 0.21 percent in the morning. The country's “Big Four” banks traded higher on the day, with ANZ rising 0.52 percent. Gold producers, on the other hand, fell, with the All Ordinaries Gold index sliding by 0.93 percent.

South Korea's Kospi was near break even levels, inching up 0.08 percent after sliding earlier below the flat line. Increases in retailers and steelmakers were countered by the losses in several heavyweight tech stocks. Samsung Electronics and SK Hynix declined 1.04 percent and 1.39 percent respectively.

Japanese markets are closed in celebration of the Coming of Age Day.

MSCI's broad index of shares in the Asia Pacific region, excluding Japan, stood 0.09 percent higher.

The yen trader against dollar at 113.11, while the Australian dollar was mostly steady at $0.7859.

Asian markets notched multi-year highs during the first trading week of the year. Hong Kong's Hang Seng Index reached its highest level in 10 years and Japan's Nikkei 225 Index surged to levels not seen in 26 years in the previous trading day.

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European Economics Preview: Eurozone Economic Confidence Data Due

Economic confidence and retail trade from euro area and factory orders from Germany are due on Monday, headlining a busy day for the European economic news.

At 2.00 am ET, Destatis is scheduled to issue Germany's factory orders data. Economists forecast orders to fall 0.2 percent on month in November, reversing a 0.5 percent rise in October.

In the meantime, industrial production data from Norway is due.

At 3.00 am ET, the Czech Statistical Office releases industrial and construction output and foreign trade figures. Also, Hungary's industrial output and retail sales reports are due.

At 3.15 am ET, the Swiss Federal Statistical Office publishes inflation data.

At 4.30 am ET, Eurozone Sentix investor confidence data is due. The indicator is forecast to rise slightly to 31.2 in January from 31.1 in December.

At 5.00 am ET, the European Commission publishes Eurozone economic sentiment survey results. The index is seen at 114.7 in December versus 114.6 in November.

In the meantime, Eurostat releases retail sales data. Economists forecast euro area retail sales to grow 1.2 percent on month in November in contrast to a 1.1 percent fall in October.

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Australia's Consumer Confidence Improves Sharply

Australia's consumer confidence strengthened notably during the week ended January 8, a weekly survey compiled by the ANZ bank and Roy Morgan Research showed Tuesday.

The consumer confidence index climbed to 122.0 from 116.5 in the preceding week. Moreover, this was the highest score since November 2013.

All the sub components showed significant increases during the week.

Consumers remained optimistic about financial conditions, which rose to the highest since early 2017. "ANZ-Roy Morgan Australian Consumer Confidence starts the year on a high as the festive mood carries on to 2018,"

ANZ's head of Australian Economics, David Plank, commented.

"Continued strength in the labor market, and a strong performance in the Ashes series likely helped sustain the cheer among consumers."

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China Inflation Rises 1.8% On Year In December

Consumer prices in China were up 1.8 percent on year in December, the National Bureau of Statistics said on Wednesday.

That missed expectations for an increase of 1.9 percent but was up from 1.7 percent in November.

On a monthly basis, inflation gained 0.3 percent following the flat reading a month earlier.

The bureau also said that producer prices jumped an annual 4.9 percent, exceeding forecasts for a gain of 4.8 percent but down from 5.8 percent in the previous month.

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US Job Openings, Layoffs Drop in November

U.S. job openings dropped for the second consecutive month in November with declines in the manufacturing and real estate sectors, supporting economist forecasts that job growth will slow this year.

The monthly Job Openings and Labor Turnover Survey, or JOLTS, by the Labor Department, also showed that layoffs fell to a six-month low, however, showing sustained labor market strength.

Job openings, a measure of labor demand, fell by 46,000 to a seasonally adjusted 5.88 million, the lowest level since May. The job openings rate was 3.8 percent, a decline from October's 3.9 percent.

The JOLTS report revealed that layoffs fell 7,000 to 1.67 million in November. That was the lowest level since May and marked five consecutive months of drops.

Industries including manufacturing, business services and transportation and warehousing had fewer openings than in October, while available positions rose in construction and retail, the JOLTS report showed.

Hiring declined 104,000 to 5.49 million in November, and the hiring rate fell to 3.7 percent from 3.8 percent. Economists expect job growth this year to slow to well below the 2017 monthly average of 170,000 as the labor market reaches full employment.

The jobless rate is at a 17-year low of 4.1 percent and economists expect it to decline to 3.5 percent by the end of this year. Non-farm payrolls increased 148,000 in December.

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VENEZUELA: Country And China Review Projects To Increase Oil Production

Representatives of the Venezuelan oil company PDVSA and the China National Petroleum Corporation (CNPC) reviewed the scope of their Petrosinovensa joint venture and other joint projects aiming at accelerating oil production.

The meeting was held at the PDVSA facilities in Caracas, where the Oil Minister and PDVSA's chairman Manuel Quevedo hosted Jia Yong, president of CNPC America and representative of CNPC for Latin America.

"China and Venezuela are strategic allies to consolidate our nation as a power. We will continue advancing and working, and in the next meeting, which will occur after January 16, we will establish the advances of this very positive meeting," Quevedo said.

Venezuela and China are jointly carrying out several projects in the oil sector, such as the development of the joint ventures Petroleo Sinovensa, Petrozumano, Petrourica and Petrolera Sino Venezolana.

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Global Economy to Rise to 3.1% in 2018 - World Bank

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The World Bank is expecting global economic expansion to increase to 3.1 percent this year following a much stronger-than-expected 2017, as the rebound in investment, manufacturing, and trade continues, while commodity-exporting developing economies benefit from firming commodity prices.

The world's economic output expanded three percent last year as more than half of economies accelerated, due to a rebound in investment, manufacturing activity and trade, bank economists said.

However, the World Bank warned that over the longer term, slowing potential growth—a measure of how fast an economy can expand when labor and capital are fully employed—puts at risk gains in improving living standards and reducing poverty around the world.

Expansion in advanced economies is expected to moderate slightly to 2.2 percent in 2018.

Growth in emerging market and developing economies as a whole is seen to strengthen to 4.5 percent this year, as activity in commodity exporters continues to recover.

The slowdown in potential growth is the result of years of weakening productivity growth, weak investment, and the aging of the global labor force. The deceleration is widespread, affecting economies that account for more than 65 percent of global GDP.

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China Exports Rise More Than Forecast

China's exports grew at a faster-than-expected pace in December, data from the General Administration of Customs showed Friday.

In dollar terms, exports advanced 10.9 percent year-over-year in December, just above the 10.8 percent rise economists had forecast.

Imports increased 4.9 percent in December from a year ago, much slower than the expected growth of 15.1 percent.

The trade surplus totaled $54.69 billion in December versus the expected surplus of $37.0 billion.

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