Headlines:
- German Jan CPI MoM: 0.4% (Forecast -0.2%, Previous 0.5%)
- Money Markets pricing 10 bps ECB rate hike by Sept and over 25 bps by Dec
- Equities coming off the bid, with just over two hours until the Wall Street open
- UK PM Johnson's Office Have Received Report On Potential Downing Street Lockdown Breaches
- Russian Foreign Minister Lavrov Will Speak By Phone With U.S. Blinken On Feb. 1 - Tass
- EU Flash Prelim GDP QoQ: 0.3% (Forecast 0.4%, Previous 2.2%)
- Kremlin Says Will Respond To U.S. And NATO "When He Considers It Necessary", No Date Set
- Go-Go-Gadget GBP - Closing in on Q1 2020 highs versus the €uro
- Regional German CPI Data Deluge
- Hong Kong Retail Sales Dec YoY: 6.2% (Forecast 12.5%, Previous 7.1%)
- Europe starts the week with green on the screen: FTSE up 0.6% DAX up 1.1% STOXX 50 up 1.1%
- Spanish HICP Data: YoY 6.1% (Forecast 5.5%, Previous 6.6%)
- Eastward Yamal gas flows from Germany to Poland steady over the weekend and Monday morning
- European bourses in fine fettle, after Tech-led bid in APAC
Markets:
- USD flat, AUD leads, Scandis lag
- European equities broadly higher; S&P 500 futures down small
- US 10-year yields: 1.81%, up 3bps
- Gold: flat @ 1792
- WTI: up 80cents/0.9% @ $87.50
- Bitcoin: down 1.45% @ 37,250
It's been a morning of digesting hawkish repricing with seemingly everyone on the Street looking to up their calls for BoE, ECB and Fed rate hikes. As such, 10yr yields are up everywhere (see below).
German inflation came in lower than the previous reading, with some happy to call the top as in, though it must be noted that it beat market estimates.
Geopolitically, there has been little change on the Russia/Ukrainian front.
In the UK, Boris Johnson will be in front of MPs in the House of Commons at 15:30 GMT to discuss the Sue Gray Report on the parties at Number 10 during the lockdown. We aren't expecting to learn much, and even if we did, it's very unlikely to impact GBP.
So far, and I'm at risk of a monster 'Commentator's Curse' here, markets haven't shown signs of a repeat of last week's erratic behaviour.
10-Yr Yields:
