FRANCE: Joint Committee Meets To Seek Agreement On Budget
Seven senators and seven deputies are meeting at the Palais Bourbon to reach an agreement between the Senate and National Assembly on the text of a state budget. The joint committee will discuss the 60 articles and hundreds of provisions in the budget document passed by the Senate last week. The committee will seek a resolution that allows for the presentation of a budget draft to the plenary of the National Assembly next Monday (3 Feb).
- Eric Coquerel, a deputy from the far-left La France Insoumise (LFI) who chairs the National Assembly's Finance Commission, said that the joint committee would inevitably put forward a deal due to the balance of the members - with eight from the right and six from the left. Coquerel said that the main debate would come on the Assembly floor, where the gov't does not hold a majority. The LFI has said it intends to put forward a censure motion against PM Francois Bayrou.
- As noted on 29 Jan (see 'FRANCE: Senator-PS Not Returning To Budget Talks 'For Now'', 1537GMT) the centre-left Socialist Party (PS) has withdrawn from talks with the gov't on the budget following Bayrou's controversial comments on immigration. Without the PS' support, Bayrou could be forced to use Art. 49.3 of the constitution to push through a budget without a vote.
- This would be a very unpopular decision with the left, and Bayrou could be ousted if the far-right Rassemblement National does not offer its backing to the PM.
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COMMODITIES: WTI Futures Holding Higher
WTI futures are trading higher today as the contract extends recent gains. A stronger reversal to the upside would refocus attention on key short-term resistance at $76.41, the Oct 8 high. Initial firm resistance is unchanged at $71.97. A bear threat in Gold remains present. The yellow metal traded sharply lower on Dec 18 and the move undermines a recent bull theme. A resumption of weakness would open key support at $2536.9, the Nov 14 low.
- WTI Crude up $0.4 or +0.56% at $71.41
- Natural Gas down $0.14 or -3.51% at $3.799
- Gold spot up $8.09 or +0.31% at $2614.49
- Copper down $3.3 or -0.81% at $405.95
- Silver up $0.01 or +0.05% at $28.961
- Platinum up $8.16 or +0.9% at $912.55
EQUITIES: Bear Threat in E-mini S&P Remains Present
A bear threat in the S&P E-Minis contract remains present and the latest move down highlights the end of the recent Dec 20 - 26 corrective bounce. An extension lower would expose 5866.00, the Dec 20 low and a key short-term support. A bull cycle in the Eurostoxx 50 futures contract remains intact, however, the recent move down highlights a corrective phase. Despite the latest bounce, a short-term bear threat remains present - for now.
- In China the SHANGHAI closed lower by 55.563 pts or -1.63% at 3351.763 and the HANG SENG ended 18.53 pts higher or +0.09% at 20059.95.
- Dow Jones mini up 56 pts or +0.13% at 42977, S&P 500 mini up 17.75 pts or +0.3% at 5976.25, NASDAQ mini up 87.75 pts or +0.41% at 21503.25.
CHINA: CFETS RMB Basket Tweak Drops USD, EUR, JPY Weighting, Adds MOP
China adjust the currency weightings as part of the CFETS RMB Index: Full basket of currencies now composed of 25 currencies, having included the Macau Pataca (MOP) for 2025:
- USD weighting dropped to 18.903% from 19.460%
- EUR weighting dropped to 17.902% from 18.080%
- JPY weighting dropped to 8.584% from 8.963%
Full list found here: https://iftp.chinamoney.com.cn/chinese/zxpl/20241231/3028340.html
