Europe

Global stocks and US equity futures roared upward to new record highs to start the second-to-last week of the year, boosted by optimism over a Republican agreement on the shape of U.S. tax cuts aimed at lifting growth; incidentally this is the 6th consecutive day that the "tax bill" has been priced in by the market, and according to cynics, 6th consecutive week and/or 6th month. Meanwhile, the dollar dropped and Treasuries headed lower.

Since the common currency's inception in 1999, the EUR-hedged yield 'offered' to European investors from investing in US Treasuries has never been worse...

As Bloomberg notes, for European investors using swaps to protect against currency swings, the benchmark 10-year U.S. yield fell Friday on a euro-hedged basis to around -60bps.

In other words, it costs European investors 60bps per year to 'own' 10Y Treasuries on a EUR-hedged basis.

Authored by Soeren Kern via The Gatestone Institute,

Authored by Andrew Korybko via Oriental Review,

Poland’s new Prime Minister Mateusz Morawiecki shared his dream to make Europe Christian again.

Submitted by Shant Movsesian and Rajan Dhall MSTA
from fxdailyterminal.com