Headlines:
- Light changes in European morning trade so far
- Eurozone November PPI -0.9% vs -0.9% m/m expected
- Germany December construction PMI 41.7 vs 41.5 prior
- Germany November trade balance €10.8 billion vs €7.5 billion expected
- UK December final services PMI 49.9 vs 50.0 prelim
- Britain saw its hottest year on record in 2022
- Japan PM Kishida: There are stagflation concerns if wage growth lags behind price increase
- Top IMF official calls on Fed to "stay the course" in inflation fight
Markets:
- CHF leads, GBP lags on the day
- European equities little changed; S&P 500 futures flat
- US 10-year yields down 0.8 bps to 3.701%
- Gold down 0.5% to $1,845.47
- WTI crude up 2.0% to $74.32
- Bitcoin up 0.1% to $16,826
Things look to be settling down after the volatile flow-driven moves to start the new year, with little change across broader markets and among major currencies today.
The dollar was lightly higher to start European morning trade before losing some ground and is now keeping flattish with not much to really take note of against the rest of the major currencies bloc. At time of writing, the euro, yen, aussie, and kiwi are pretty much flat against the greenback.
Meanwhile, GBP/USD is down slightly by 0.4% to near 1.2000 with the loonie slightly lower on the day as well - USD/CAD seen up 0.2% to 1.3500. But the changes are light and that is exemplified by a more tentative market mood today.
European stocks opened slightly lower but are now little changed with some indices slightly higher on the day. US futures are also reflecting a similarly tepid mood with S&P 500 futures up just 0.1%.
The bond market is also taking a bit of a breather, as the movement today is rather light. All of this comes as we start to see markets settle down and gear towards the US non-farm payrolls tomorrow.
