Headlines:
- The bond market will have a lot to say post-FOMC
- UK November jobless claims change -49.8k vs -14.9k prior
- Switzerland November producer and import prices +0.5% vs +0.6% m/m prior
- US November NFIB small business optimism index 98.4 vs 98.2 prior
- Pfizer vaccine seen giving 70% protection against hospitalisation in South Africa's latest COVID-19 wave
- Chinese city of Guangzhou detects one omicron variant infection in traveler arriving from abroad
- France says no plans to change current protocols to curb the spread of COVID-19
- UK government warns of "huge" virus spike, floats projection that cases could hit 200,000 a day
Markets:
- EUR and CHF lead, AUD lags on the day
- European equities slightly higher; S&P 500 futures down 0.1%
- US 10-year yields up 1.4 bps to 1.437%
- Gold down 0.2% to $1,83.40
- WTI up 0.3% to $71.51
- Bitcoin up 1.8% to $47,650
The market mood remains more tentative as we continue to count down to the key central bank meetings later in the week.
Equities stayed more cautious, with US futures fading the early optimism from Asia during the session. S&P 500 futures erased gains of around 0.3% to fall by 0.4% before paring that a little now. European indices kept a lightly more positive tone but nothing too significant after the declines yesterday.
Treasury yields are slightly higher on the day but nothing notable as investors continue to wait on the Fed.
In FX, the dollar held a slight advance early on but is now trading more mixed on the day. EUR/USD fell to 1.1267 before picking up to trade up to 1.1325, though upside may be more limited.
USD/JPY eased a little from 113.75 to 113.55 and is keeping thereabouts for now. Meanwhile, GBP/USD is fending off a test of 1.3200 once again as it climbs to 1.3250 despite UK omicron worries.
Elsewhere, commodity currencies didn't do a whole lot and is trading little changed against the greenback.
In essence, the market looks more mixed again as sentiment is a bit rocky awaiting the Fed. That remains the main event this week before other major central banks also step into the spotlight on Thursday.
