Headlines:
- UK PM Johnson apologises, admits he attended No. 10 drinks event in May 2020
- US MBA mortgage applications w.e. 7 January +1.4% vs -5.6% prior
- Eurozone November industrial production +2.3% vs +0.5% m/m expected
- China December M2 money supply +9.0% vs +8.7% y/y expected
- ECB's Villeroy: We are very near to the peak in inflation
- Germany December wholesale price index +0.2% vs +1.2% m/m expected
- BOJ raises assessment for all 9 Japanese regions in latest economic report
Markets:
- CAD leads, NZD lags on the day
- European equities slightly higher; S&P 500 futures up 0.1%
- US 10-year yields flat at 1.745%
- Gold down 0.2% to $1,818.41
- WTI up 0.6% to $81.70
- Bitcoin up 1.1% to $43,172
The market is only interested in one thing today and that is the US CPI report release later.
As such, European morning trade featured a rather subdued and quiet tone with investors and traders not showing much enthusiasm. FX is little changed for the most part with the dollar keeping slightly mixed.
Meanwhile, European indices opened higher following the gains from Wall Street yesterday but the advance is more measured for the time being. US futures are also sitting cautiously optimistic, not hinting at much during the session.
Elsewhere, Treasury yields are flattish and waiting to take cues from the key risk event later in the day.
Markets aside, there is a bit of drama in Westminster as UK prime minister, Boris Johnson, apologised and admitted to attending a party in Downing Street garden during lockdown in May 2020. The pitchforks are out, so that is at least something to watch out for.
