European and US futures are pointing lower and risk trades in general are struggling on the day. The aussie and kiwi are the laggards in the major currencies space, while oil is down 0.8% to $77.20.
Futures in Europe are down over 1% while S&P 500 futures are down 0.3% and Nasdaq futures down 0.5%. Meanwhile, the dollar is keeping in good stead alongside the yen, who is benefiting from the more dour risk sentiment despite higher Treasury yields.
There won't be much in Europe to shake things up, so this will certainly be a test for dip buyers ahead of the US non-farm payrolls release tomorrow. But if anything else, I'd expect risk to keep more cautious until then.
0700 GMT - Germany November factory orders
After a slump in October, industrial orders are estimated to rebound in November. That said, this is a bit of lagging data point amid the focus on omicron risks and the outlook for now.
0830 GMT - Germany December construction PMI
German construction activity has been suffering amid supply shortages and rising cost pressures, so don't expect that backdrop to change much in the final month of last year.
0930 GMT - UK December final services, composite PMI
The final readings here should reaffirm a knock to economic activity amid a surge of COVID-19 infections, impacting consumer demand and weighing on the business outlook.
1000 GMT - Eurozone November PPI figures
Another month, another surge in price pressures in the euro area. That is expected to remain the theme going into 2021 year-end.
1230 GMT - US December Challenger job cuts, layoffs
A reminder that it is NFP week in the market. The data provides information on the number of announced corporate layoffs by industry and region and acts as a general labour market indicator.
1300 GMT - Germany December preliminary CPI figures
Prior release can be found here. Headline annual inflation is expected to keep above 5% and that will just continue to keep pressure on the ECB in trying to brush aside surging cost pressures in the economy. The state readings will provide some idea of the estimate in the lead up to the release above.
That's all for the session ahead. I wish you all the best of days to come and good luck with your trading! Stay safe out there.
