On financial markets, the year is starting off more or less where 2012 left off, with talks concerning the fiscal cliff hogging centre stage. Although Congress was able to avoid the nightmare scenario by reaching an agreement that prevented some $600 billion in budget cuts, the wealthiest Americans will see their marginal tax rate increase from 35% to 39.6% this year, much to the chagrin of House Republicans.
Financial markets reacted positively to the news yesterday. However, we have noticed certain setbacks on major markets, as investors appear genuinely concerned by the next major political hurdle, namely the debt ceiling.
The main economic indicators today will come to us from south of the border. Weekly Initial Jobless Claims will be released at 8:30 this morning, and observers expect a rise to 360k. The most recent FOMC Meeting Minutes will then be published at 2:00 p.m.