I. Yesterday’s News
International News

1. The U.S. economy grew faster than initially thought in the third quarter, notching its quickest pace in three years, as increases in business investment in inventories and equipment offset a moderation in consumer spending. Gross domestic product expanded at a 3.3 percent annual rate in the third quarter also boosted by a rebound in government spending, the Commerce Department said in its second estimate on Wednesday. That was the fastest pace since the third quarter of 2014 and a pickup from the second quarter’s 3.1 percent rate.

2. The U.S. economy has gathered steam this year and will warrant continued interest rate increases amid a strengthened global recovery, outgoing Federal Reserve Chair Janet Yellen told Congressional leaders on Wednesday in her final scheduled testimony on Capitol Hill. Her valedictory session before the Joint Economic Committee described an economy where the jobs market remains strong and economic growth has hit three percent for two quarters running, above the Fed's estimate of U.S. potential and likely enough for an expected December rate increase.

3. OPEC and Russia look set to prolong oil supply cuts until the end of 2018 this week while signalling that they may review the deal when they meet again in June if the market overheats. Russia needs much lower oil prices to balance its budget than OPEC's leader Saudi Arabia, which is preparing a stock market listing for national energy champion Aramco next year and would hence benefit from pricier crude. Six ministers from OPEC and non-OPEC oil producers including Saudi Arabia and Russia met in Vienna on Wednesday - one day ahead of a full OPEC gathering - and recommended extending the cuts to the end of 2018. At present, the cuts expire in March.

4. The U.S. economy expanded at a modest to moderate pace in October through mid-November and inflation pressures increased, the Federal Reserve said on Wednesday in its periodic snapshot of the U.S. Economy. "Price pressures have strengthened since the last report," the U.S. central bank said in its Beige Book survey, an upgrade after several months of benign inflation assessments. In the Fed's report, tightness in the labor market was seen as widespread while wage growth was modest to moderate in most districts, with the largest wage increases going to employees in hard-to-fill jobs.

Domestic News

5. China's economy is still facing relatively large downward risks that may become apparent by early 2018, a senior official of the banking regulator said on Wednesday.
Yu Xuejun, head of the China Banking Regulatory Commission's regulatory board for key state-owned financial institutions, said the two different operational system of state-owned and private enterprises is the root cause of the dilemma in China’s macro regulation.

6. The Trump administration launched an aggressive new trade action against imports of Chinese aluminum alloy sheet on Tuesday, the first U.S.-initiated anti-subsidy and anti-dumping probes in decades, drawing a strong reaction from Beijing.

7. China has introduced a trial regulation to audit outgoing officials' management of natural resources. According to the regulation by the State Council, audits will be carried out of performance of officials' administrative areas during their terms in implementing environmental policies and guidelines, in compliance with the law and requirements relating to natural resource management and environmental protection, as well as the use of funds. The pilot audit will be taken full effect starting from 2018.

8. China's Foreign Ministry has expressed what it called "grave concern and opposition" to North Korea's latest missile launch in an unusual rebuke of its neighbor and ally. Ministry spokesman Geng Shuang said the country hoped "all parties would act cautiously to preserve peace and stability," Reuters reported on Wednesday morning. The ministry's spokesman added that China would continue to uphold peace and stability on the Korean Peninsula and would work for "settlement on the North Korea nuclear issue."

II. Market Overview
FX
1. Global Market

The dollar was steady against a basket of currencies on Wednesday, supported by strong U.S. third-quarter economic growth data, but uncertainty surrounding lawmakers’ efforts to pass a tax bill kept dollar bulls in check. The dollar index, which measures the greenback against six rival currencies, was at 93.23, little changed on the day. Against the yen the dollar was 0.36 percent higher, as U.S. Treasury yields climbed after the upbeat GDP data. Bitcoin was the most eye-catching mover, and zoomed past $11,000 to hit a record high of $11,395 before pulling back to trade at $9,919.58, little changed on the day. Sterling was 0.59 percent higher at $1.3415. The Canadian dollar weakened to a nearly four-week low against its U.S. counterpart as oil prices fell.

2. Home Market

China's yuan fell against the U.S. dollar, in the morning session on Wednesday. It pared losses after testing the key mark of $6.61. A firmer dollar index lowered the official midpoint rates, but market expectation diverged, and yuan’s sensitivity to the U.S. currency reduced, traders said. Investors shall keep an eye on the U.S. Tax overhaul. Yuan is expected to keep wide rangebound in the near term.

Precious Metals

The price of gold fell on Wednesday, as global stocks hovered near record highs making the safe-haven asset less attractive, and upbeat U.S. growth data prompted an earlier rise in the U.S. dollar and U.S. Treasury yields. Spot gold was down at $1,283.49 an ounce. U.S. gold futures for December delivery settled down $12.80, or 1 percent, at $1,282.10 per ounce.

Commodities
1.Crude Oil

Oil prices dipped on Wednesday in a volatile session buffeted by conflicting statements from oil ministers a day ahead of OPEC's meeting in Vienna, as members debate the path for an extension of the group's supply-cut agreement. Brent crude futures settled down 50 cents to $63.1 a barrel, a 0.8 percent drop, while U.S. crude ended down 69 cents, or 1.2 percent, to $57.30 a barrel.

2.Base Metals

Copper prices dropped for a third day and aluminium fell to the lowest since mid-August as concerns over demand in top consumer China and declining oil prices pushed investors to sell. Benchmark copper on the London Metal Exchange closed down 0.7 percent at $6,760 a tonne after hitting $6,737, the lowest since Nov. 17. The metal used in power and construction has fallen 3.5 percent from Friday's close.

U.S. Treasuries
1. U.S. Bonds

U.S. Treasury yields rose across most maturities on Wednesday bolstered by upbeat remarks on the economy by Federal Reserve Chair Janet Yellen and data showing stronger than expected U.S. economic growth for the third quarter. U.S. 10-year note and 30-year bond yields, which move inversely to prices, climbed to two-week highs, while those on two-year notes advanced to a more than one-week peak after hitting a nine-year high last week. In late trading, the 10-year Treasury yield was up at 2.379 percent, from 2.337 percent late on Tuesday. It hit a two-week high of 2.395 percent. U.S. two-year yields were at 1.762 percent from 1.758 percent on Tuesday. U.S. 30-year bond yields were up at 2.818 percent from Tuesday's 2.765 percent.

2. Chinese bonds

Overnight liquidity in China’s inter-bank market remained ample, but 7-day products were in short supply. Liquidity is expected to rebalance in early December. But institutional investors remained cautious ahead of the new year.

Stock Market
1. U.S. Equities

The Nasdaq posted its biggest one-day drop in more than three months on Wednesday as investors fled high-flying technology stocks and shifted to banks and other pockets of the market that could benefit from improving economic conditions, lower regulations and taxes as well as higher interest rates. The S&P tech sector, which has propelled the market's record-setting rally this year, shed 2.6 percent for its biggest daily decline in over five months.

2. Hong Kong Equities

Hong Kong shares ended Wednesday lower despite gains on Wall Street, with investors' risk appetite curbed by North Korea's latest missile test. At close of trade, the Hang Seng index was down 57.02 points or 0.19 percent at 29,623.83. The Hang Seng China Enterprises index fell 0.49 percent to 11,647.98.

3. China Equities

Chinese stocks inched higher in enlarged turnover, reversing the course after pulling back to 3,300. Supported at the level, cement, steel and coal sector led the rebound after the noon bell. Major indexes are expected to consolidate in coming sessions with some consistent drivers. The benchmark Shanghai Composite Index settled up 4.20 points or 0.13 percent to 3,305.57. The trading volume expanded over 30 percent to 217.6 billion yuan.