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Relief on trade, trouble in tech – and a takeover

A tough night on European exchanges turned strongly positive after the White House announced a preliminary trade deal with the European Union. US stocks rose, the US dollar weakened and bonds are under pressure globally. Industrial commodities are adding to overnight gains and Asia Pacific markets may outstrip the small rise seen in overnight futures trading.

In other positive developments crude oil prices lifted after US data showed greater consumption than expected. A weakening US dollar gave the commodities complex a lift, and gold is back above US $1,230 an ounce. Forex traders will watch today’s yuan fixing in Beijing with additional interest.

The announcement of a deal between Nine Entertainment and Fairfax Media may also bolster investor sentiment. Although the parties are terming it a “merger”, the terms could be interpreted as a takeover given the premium Nine will pay for control of Fairfax.

A 23%+ after hours plunge in FaceBook shares may take some of the gloss off otherwise strong leads. Shares in the social network plummeted after missing revenue estimates for the first time in three years and the CFO guided growth expectations lower.

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