Headlines:
- US MBA mortgage applications w.e. 31 December -5.6%
- An encouraging sign from China perhaps?
- BOJ expected to revise up inflation forecast for coming fiscal year - report
- Eurozone December final services PMI 53.1 vs 53.3 prelim
- Treasuries selloff pause at critical juncture
- Hong Kong to ban flights from US, UK to curb omicron spread
- PBOC set to step up liquidity injection before Lunar New Year holiday
Markets:
- JPY leads, CAD lags on the day
- European equities higher; S&P 500 futures down 0.1%
- US 10-year yields down 1.3 bps to 1.654%
- Gold up 0.1% to $1,817.16
- WTI up 0.2% to $77.15
- Bitcoin flat at $46,230
The market mood remains rather pensive as we await US ADP data and also the FOMC meeting minutes later today.
European stocks are holding decent gains, keeping the good form, while US futures are more subdued. Tech remains the laggard with Nasdaq futures down 0.5% on the day.
Besides that, the selloff in Treasuries is also taking a breather at a critical juncture. 10-year yields are stalling at key resistance from the recent wedge and that is seeing USD/JPY pull back as well. The former is down slightly to 1.654% while the latter retreated from 116.00 to 115.65 on the session.
Meanwhile, the dollar is a bit more mixed on the day as it trades a little lower against the euro and aussie as well. However, the loonie is the laggard in the major currencies space with USD/CAD up a touch to 1.2720-30.
There isn't much of a coherent theme in the market otherwise, as we await some key risk events later in the day.