European Union

The chaotic trading in cable continues, this time spiking to the upside after Bloomberg reports that the EU and U.K. have reached an agreement on the sensitive issue of the role of the European Court of Justice after Brexit, according to two people familiar with the matter.

The agreement on the court leaves the Irish border as the only obstacle to talks moving on to the future relationship.

As a reminder, EU leaders are due to decide whether talks can move on at a summit on Dec. 14-15.

Once again weakness in the US carried through to Asia with stocks unable to hold any National-Team-inspired gains, but it was the contagion to commodities that was most notable (as a hike in exchange fees snuffed out a lot of speculative fervor)

• European equities have followed suit from their Asia-Pac counterparts to trade higher across the board
• Markets await Brexit headlines amid Barnier deadline
• Looking ahead, highlights include US weekly jobs and potential comments from ECB’s Draghi.

ASIA

Cable traders are suffering through a news overload this morning, with the optimism and euphoria which sent the pound to two month highs as recently as 2 days ago fading fast on speculation whether UK PM Theresa May will be able to engineer a Brexit breakthrough in time. And following overnight speculation that her cabinet may revolt, and what one desk dubbed "headline havoc" this morning in which DUP sources saying that there will be no deal this week, it’s looking increasingly in jeopardy. 

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