Uruguay Inflation Rate Declined to 8.1%

News Event

From Trading Economics: Consumer prices in Uruguay went up 8.1 percent year-on-year in November of 2016, easing from an 8.4 percent increase in a month earlier. It is the lowest inflation rate since March last year, as cost rose at a slower pace for food and non-alcoholic beverages (+7.7 percent from +9.1 percent in October) and housing (+8.1 percent from +8.3 percent). On a monthly basis, consumer prices increased 0.1 percent. Inflation Rate in Uruguay averaged 32.10 percent from 1938 until 2016, reaching an all time high of 182.86 percent in June of 1968 and a record low of -7.12 percent in February of 1950.

Market Opening Wrap

In European Equity Markets Italian banks are seen down 5 to 6 percent on Monday, according to traders, as potential political uncertainty in the aftermath of Prime Minister Matteo Renzi's resignation following a crushing defeat in a constitutional referendum clouds the outlook for a clean-up of bad debts. Milan's main bourse was still down 0.4 percent after falling as much as 2 percent. Italian financials shed 2.6 percent as a 5-billion euro rescue plan for Monte dei Paschi di Siena hung by a thread. Europe's FTSEuroFirst index of leading 300 stocks rose 0.7 percent. Outside of Italy, European markets took some encouragement from the sound defeat in Austria's presidential election of a far-right candidate by a pro-European despite forecasts of a tight race.

In Currency Markets the euro recovered from earlier weakness against the U.S dollar on Monday after Italian Prime Minister Matteo Renzi's loss in a referendum over constitutional reform was seen by traders as largely expected and recent euro weakness was seen as having run too far. The single currency tumbled as much as 1.4 percent in Asian trade to hit $1.0719, its weakest since March 2015, before recovering to $1.0709, up 0.43 percent on the day. The dollar index fell 0.31 percent to 100.47, the lowest since Nov. 17. The British pound was changing hands at $1.2709, ahead of the U.K. Supreme Court's hearing on whether Parliament's consent will be required for the government's Brexit negotiations.

In Commodities Markets  crude rose above $55 a barrel to hit a 16-month high on Monday as rising prospects of a tightening market after last week's OPEC landmark deal to cut production has given speculators impetus to increase bets on higher prices. Brent crude rose 49 cents to $54.95 a barrel, a 0.9 percent gain, after hitting $55.33, its highest since July 2015. U.S. crude West Texas Intermediate futures rose 23 cents to $51.91 a barrel, a 0.5 percent gain. Spot gold fell by as much as 1.6 percent to its lowest since February at $1,157 an ounce and was down 1.5 percent at $1,159.61. Silver fell 0.9 percent to $16.56 an ounce, after touching its highest in more than two weeks earlier in the session.

In US Equity Markets  stocks are firmly higher early Monday, rising amid a persistent crude-oil price spike and despite the defeat of Italy's constitution-reform referendum. The Dow Jones industrial average was up 0.46 percent, at 19,258.3, the S&P 500 was up 0.47 percent, at 2,202.24 and the Nasdaq composite was up 0.54 percent, at 5,284.06. Eight of the 11 main sectors trading higher. Financials and energy were leading, while utilities and health-care sectors were lower.  Shares of Visa, Nike and Goldman Sachs led the Dow industrials in early trade, while UnitedHealth Group Inc. shares were the biggest laggards among blue-chip names.

In Bond Markets  prices on the U.S. 30-year Treasury bond fell 1 point on Monday, as the Institute for Supply Management said the pace of growth among domestic services industries accelerated more than forecast in November. The Benchmark 10-year yield was up 4 basis points at 2.434 percent, while two-year yield was up 3 basis points at 1.136 percent. The 30-year Treasury, or long bond, was last down 1 point in price for a yield of 3.114 percent, up over 5 basis points from late on Friday.

Source: Institute of Trading and Portfolio Management