Asia

It has been more than six weeks since North Korea has conducted a missile test, the longest lull so far this year, but that could be about to change, Reuters reported, citing unnamed South Korean military officials.

South Korean intelligence has detected a flurry of activity including the movement of vehicles has been detected at the North’s missile research facilities in Pyongyang, where the most recent missile test was conducted, pointing to another possible launch, South Korea’s Intelligence Service said in a briefing to lawmakers. It did not say how the activity was detected.

Yesterday's brief late night dip in ES has been promptly bought with US equity futures fractionally lower, Asian shares inching higher on Thursday and Europe unchanged ahead of today's Super Thursday, where we get the Republican tax bill revealed shortly before noon, the BoE's rate hike announcement, and Trump appointing Jay Powell as the next Fed chair, as well as as earnings from companies including Apple and Starbucks. With the dollar dropping slightly, markets seem to have taken a shine to the euro and EM FX, specifically your high beta currencies.

Back in 2014, a scandal erupted when media reports confirmed what many had previously speculated about China's banking system: namely that much of China's staggering loan issuance had been built (literally) upon air and that trillions in loan collateral had been "rehypothecated" between two, three or many more debtors - or never even existed - forcing banks to accept that they would never recover much if any of the pledged collateral - in most cases various commodities - if the economy were to suffer a hard-landing resulting in mass defaults.

• NYC truck attack: Investigators scour driver’s background (AP)
• Release of House tax bill delayed until Thursday (Reuters)
• U.S. pursues direct diplomacy with North Korea despite Trump rejection (Reuters)
• GOP Braces for ‘All Hell’ to Break Loose Over Tax Bill (BBG)
• Former Trump adviser’s guilty plea could rattle White House (AP)
• Disclosure of Papadopoulos’s Email Hunt Sheds Light on Quest for Clinton ‘Dirt’ (WSJ)
• Brexit May Cost 75,000 U.K. Finance Jobs, Top Regulator Says (BBG)

US equity futures have hit a new records, helped by surging Asian and European stocks which have all started November on a euphoric note. Surging commodity prices, optimism about tax reform and hope for a new dovish Fed chair all combined to drive global stock markets to record highs on Wednesday, with the MSCI’s world stock index climbing 0.3% to a fresh all time high. Mining stocks lead gains as nickel and other industrial metals soar.