Iraq PM Visits Washington as U.S. Oil, Gas Deals Take Center Stage 
Asian Stocks Slide as Oil Surge, U.S.-Iran Tensions and Fed Rate Bets Weigh on Markets 
Asian Currencies Weaken as Stronger Dollar Weighs, Yen Supported by GPIF Repatriation Hopes 
China Trade Surplus Hits $125.6 Billion as June Exports, Imports Smash Forecasts 
Oil Prices Surge as U.S.-Iran Conflict Escalates and Strait of Hormuz Risks Grow 
Asian Currencies Stay Rangebound as Middle East Tensions, Weak China GDP Weigh on Sentiment 
Japanese Yen Holds Steady as Intervention Hopes Grow Ahead of U.S. CPI Data 
Gold Price Holds Near Record High as Cooling U.S. Inflation Offsets Fed Caution 
China Home Prices Fall Again in June Despite Slower Pace of Decline 
The German bunds remained in neutral mode Wednesday after the country’s consumer price-led inflation index (CPI) for the month of November remained unchanged. Also, investors are awaiting the European Central Bank’s (ECB) monetary policy decision, scheduled to be unveiled on December 14.
The German 10-year bond yields, which move inversely to its price, rose 1 basis point to 0.32 percent, the yield on 30-year note surged 1-1/2 basis points to 1.15 percent and the yield on short-term 2-year traded nearly flat at -0.73 percent by 09:50GMT.
With the German figures having surprised on the downside (with output excluding construction down 1.4 percent m/m) but the French figures having surprised significantly on the upside (e.g. with manufacturing output up 2.7 percent m/m), overall euro area industrial production is expected to have been broadly flat, leaving it still up a little more than 3 percent y/y – somewhat softer than recent business surveys have signalled.
In addition, following yesterday’s relatively firm French payroll numbers, euro area employment figures for Q3 are also due today and should show another quarter of steady jobs growth broadly in line with the average rate of the previous four quarters (0.4 percent q/q).
Further, ahead of the equivalent figures for the euro area due next week, final November CPI figures published in Germany this morning confirmed the flash estimates, which saw the headline rate on the EU measure rise above expectations by 0.3ppt to 1.8 percent y/y, not least due to higher petrol price inflation.
Meanwhile, the German DAX traded 0.09 percent down at 13,171.25 by 09:50 GMT, while at 09:00GMT, the FxWirePro's Hourly Euro Strength Index remained neutral at -61.22 (higher than +75 represents bullish trend). For more details, visit http://www.fxwirepro.com/currencyindex
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