Asian markets rose the most in 3 weeks as hopes that a deal for a coalition party in Italy increased whilst the BOJ have nominated a new head. The Nikkei was notably strong up around 2.5% on the prospect of significant stimulus measures.

In Europe, it looks as though the major players will form a coalition government in Italy, as bond yields traded lower yesterday as the government held a successful debt auction. Equity futures are pointing to a rise of around 80bps ahead of German CPI and unemployment data along with French PPI and consumer sentiment.

US markets rebounded strongly yesterday with the Dow posting its highest close in 5 years. Today we get the confirmed 4Q GDP number with consensus at 0.5%, jobless claims and Chicago PMI.

Philip Ball | Sales and Trading