- US to weigh strikes against Houthi terror bases in Yemen
- Fitch downgrades four Chinese National asset management firms by one notch
- China’s LGFVs must repay a record $651 billion of bonds in 2024 (will refinance)
- BOJ Gov Ueda says he hopes Japan's economy can balance rises in wages and & inflation
- Employment data coming up from the US on Thursday - December ADP
- China Caixin Services PMI for December 52.9 (expected 51.6)
- Morgan Stanley reiterate their call that the FOMC will wait until June 2024 to cut
- PBOC sets USD/ CNY mid-point today at 7.0997 (vs. estimate at 7.1504)
- British Royal Mint sees record bullion demand in 2023 - citing safe haven demand
- David Rosenberg predicts US recession due to fiscal drag and Fed tightening feeding in
- Japan final December manufacturing PMI 47.9 (prior 48.3)
- US not out of the woods when it comes to inflation - risk the Fed is higher for longer
- Further signs that UK firms are reluctant on capital investment
- Icelandic scientists are preparing to drill into a magma chamber - geothermal power.
- US and European equities - HSBC analysts warn of 'Reverse Goldilocks' environment
- Australian December Services PMI 47.1 (prior 46.0)
- Forexlive Americas FX news wrap: Dollar fades as Treasury yields reverse lower
- Private oil survey of inventories data shows much bigger headline crude draw than expected
- Trade ideas thread - Thursday, 4 January, insightful charts, technical analysis, ideas
News and data flow was light during the session here with eyes now turning towards the US jobs report not due until Friday.
China was a focus. Chinese government bond yields fell to their lowest in more than three years. The yield on the 10 year fell towards 2.50% and hit lows last seen in May of 2020. Expectations of further policy easing from the People’s Bank of China are accelerating. Alongside tumbling yields were falls on stock markets. China's blue-chip Index CSI 300 Index was down more than 1% at one stage, with falls also in Shenzen and on the Shanghai Composite. Hong Kong’s Hang Seng Index dropped also.
Fitch downgraded four Chinese National Asset Management Companies (see bullets above).
The People’s Bank of China weighed in with support for the yuan at the reference rate setting today with a rate more than 500 points lower for USD/CNY than models estimated.
Oil traded steadily with a number of tailwinds over the past 24 hours, including the bomb attack in Iran, OPEC’s statement re-affirming a commitment to unity and monitoring, and US warnings to Houthis to cease attacks on Red Sea vessels or face potential military action. The private survey of inventories showed a bigger headline crude draw than expected. US government inventory data follows on Thursday morning US time.
