I. Yesterday's News
1. U.S. home resales unexpectedly rose in November, reaching their highest level in nearly 10 years, likely as buyers rushed into the market to lock in mortgage rates in anticipation of further increases in borrowing costs. The dollar was trading lower against a basket of currencies after the data, while prices for U.S. government bonds rose. U.S. stocks were slightly weaker. Existing home sales increased 0.7 percent to an annual rate of 5.61 million units last month, the highest sales pace since February 2007. Economists had forecast sales slipping 1.0 percent to a 5.50 million-unit pace in November. Last month, the number of unsold homes on the market fell 8.0 percent from October to 1.85 million units. Supply was down 9.3 percent from a year ago and has now declined for 18 straight months on a year-on-year basis. The median house price posted a 6.8 percent increase from a year ago.

2. German economic activity will pick up slightly in the fourth quarter as household spending remains strong and exports are likely to improve, the Finance Ministry said on Thursday, adding to signs that Europe's biggest economy is set for a rebound. Rising private consumption, increased state spending and brisker construction activity helped the economy grow by 0.7 percent in the first quarter and 0.4 percent in the second. But the quarterly growth rate halved to 0.2 percent in the third quarter as a drop in exports to major trading partners put the brakes on overall economic expansion.

3. U.S. President-elect Donald Trump plans to put his pick for Commerce Secretary, billionaire investor Wilbur Ross, in charge of his get-tough trade policy, a transition team spokesman said on Tuesday. It is a signal of how Trump plans to elevate a crackdown on competitors in the world market and the overhaul of trade deals that he says have hurt U.S. factory jobs. The U.S. Trade Representative (USTR) will not be merged with Commerce, but Trump transition team spokesman Jason Miller made clear that most trade policy decisions would be steered by Ross.

4. Japanese government raised its assessment of the economy on Wednesday, echoing the Bank of Japan's more upbeat view, in a sign the economy may be steadying. The government also upgraded its view of household spending, exports and business sentiment, saying consumers' mindsets are improving and exports to Asia are recovering. "The economy is on a moderate recovery, while delays in improvement can be seen in some parts," the Cabinet Office said its monthly economic report, marking the first upgrade since March 2015.

5.Sweden's central bank held its benchmark rate at -0.50 percent and extended its quantitative easing programme on Wednesday, saying it did not expect rates to start rising until the beginning of 2018. It extended bond purchases by 30 billion crowns ($3.22 billion). "Increasingly strong economic activity creates the conditions for inflation to continue rising. But there are risks that can jeopardise the upturn in inflation. Monetary policy therefore needs to remain very expansionary," it said in a statement.

II. Market Overview
FX
The dollar retreated from a 14-year high on Wednesday, while the Swedish crown booked its biggest gains in about 10 months versus the euro after Sweden's central bank voted by a thin margin to extend its bond purchase program. The euro was down almost 1 percent against the crown at 9.6112 crowns, on track for its biggest one-day drop since February, Reuters data showed. The dollar was 1.4 percent weaker on the day at 9.2168 crowns, on course for its biggest one-day fall since June. The dollar index which measures the greenback against six major currencies, slipped 0.27 percent to 103.01. The euro was up 0.4 percent at $1.0423. The greenback shed 0.3 percent to 117.52 yen.

Precious Metals
Gold was little changed but held above last week's 10-1/2-month low on Wednesday as a retreat in the dollar from the previous session's 14-year peak prompted some buyers to hunt bargains after the metal's sharp slide from its November high. Spot gold was little changed at $1,131.41 an ounce. U.S. gold futures for February delivery settled down 0.04 percent at $1,133.20 per ounce.

Commodities
1.Crude Oil
Oil futures fell on Wednesday after Libya said it expects to boost production over the next few months and a report showing a surprise build in U.S. crude inventories last week. Brent futures for February delivery fell 89 cents, or 1.6 percent, to settle at $54.46 a barrel, while U.S. West Texas Intermediate crude for February lost 81 cents, or 1.5 percent, to $52.49 per barrel.

2. Base Metals
Copper prices held steady on Wednesday but remained under pressure from worries about an oversupplied market and funds cutting bets on higher prices over coming days. Benchmark copper on the London Metal Exchange ended up 0.2 percent at $5,515 a tonne. Aluminium closed up 0.2 percent at $1,725 a tonne, zinc fell 0.6 percent to $2,620 and lead slid 0.6 percent to $2,182. Tin lost 0.1 percent at $20,905 and nickel ceded 0.6 percent to $10,860.

U.S. Treasuries
U.S. Treasury debt prices gained slightly in light trading volumes before the Christmas holiday with no major economic data on Wednesday, as investors evaluated how many times the Federal Reserve is likely to raise interest rates next year. U.S. benchmark 10-year notes rose 7/32 in price to yield 2.54 percent, down from 2.57 percent late on Tuesday.

Stock Market
1. U.S. Equities
U.S. stocks fell on Wednesday, with healthcare and real estate shares losing ground. The Dow briefly rose to within 15 points of 20,000, a level it has never reached, but relinquished that gain and spent most of the session at a loss. The Dow Jones Industrial Average dipped 32.66 points or 0.16 percent on Wednesday to end at 19,941.96 points and the S&P 500 lost 5.58 points or 0.25 percent to 2,265.18. The Nasdaq Composite dropped 12.51 points or 0.23 percent to 5,471.43.

2. Hong Kong Equities
Hong Kong stocks broke a four-day losing streak and advanced on Wednesday, thanks to support from the mainland and Wall Street. The Hang Seng index erased some gains in the morning session and added 0.4 percent to 21,809.80 points at the close, after hitting the lowest in five months in the previous session. The Hong Kong China Enterprises Index gained 0.5 percent, to 9,331.63 points. Sectors rose across the board in Hong Kong, with service stocks leading the gains, up more than 1 percent at the close.