Headlines:
- US futures slightly higher for now, all eyes on US CPI data
- UK November payrolls change 107k vs 74k prior
- Germany December ZEW survey current conditions -61.4 vs -57.0 expected
- Swiss government anticipates slowdown in the economy but doesn't expect recession
- China reportedly delays key economic policy meeting amid surge in Covid infections
- Hong Kong to scrap PCR test requirement at immigration for visit to mainland China, Macau
Markets:
- AUD leads, USD lags on the day
- European equities higher; S&P 500 futures up 0.6%
- US 10-year yields down 3.3 bps to 3.578%
- Gold up 0.4% to $1,789.09
- WTI crude up 0.4% to $73.47
- Bitcoin up 1.4% to $17,410
It was a quiet session for the most part as markets are waiting in anticipation of the US CPI data later today.
The inflation report will surely kick off the volatile rounds over the next few days and we can expect some big moves in the aftermath of the release on either side of the coin. For now, it is pretty much the calm before the storm.
The dollar was little changed earlier on but has nudged slightly lower, though the ranges for the day are still relatively narrow. There isn't much to the move as it comes with US futures inching slightly higher in the past few hours alongside a bit of a push lower in bond yields.
All this looks to be just some positioning play in anticipation of the main event later today. Depending on the data and magnitude of any surprises, we can easily see the moves unwind or extend more significantly.
For now, it's all about the wait.
