- Japan Q3 GDP (second reading) -0.9% q/q vs -0.8% expected
- Japanese manufacturing sentiment hits a four-month high
- Japan October current account +1180 vs +1308.5B expected
- BOJ's Amamiya: Outlook highly uncertain due to emergence of omicron
- South African hospitals offer signs that omicron is milder but it's still early
- Latest South African covid data shows more reason for hope
- Private oil inventory data shows a larger draw
- Gold up $5 to $1789
- US 10-year yields down 2 bps to 1.46%
- WTI crude down 19-cents to $71.86
- S&P 500 futures +20 points
- EUR leads, CAD lags
The main mover so far is the euro and the overall risk picture is mixed. The euro has steadily climbed towards 1.1300, which was was the high yesterday before the aggressive selling in Europe.
The Japanese data painted a mixed picture. Q3 GDP was revised lower but the Reuters Tankan showed optimism building now, or at least before omicron hit. The yen rose early on but has given much of it back.
The Aussie and kiwi both made pushes higher but are in the process of giving some of that back. Treasury yields are modestly lower and so is crude but US equity futures are higher so there's no a consensus on the overall tone.
More omicron data continues to trickle out and it's generally a case of more transmission but milder cases . That's what the market wants to hear but it could all reverse on a headline.