• APAC stocks traded with gains across the board following the positive lead from Wall Street
• Chinese property names led the gains after China unveiled further support measures for the sector
• US and European equity futures resumed trade with modest gains, but price action is somewhat contained in the pre-Christmas lull
• DXY trundled lower throughout the session as it breached 104.00 to the downside before matching yesterday's 103.85 low; Aussie outperformed among G10s
• Looking ahead, highlights include UK Q3 GDP, US Q3 GDP and PCE, US Jobless Claims, CBRT Announcement

US TRADE

• US stocks closed firmer with the bulk of the gains coming at the time of the NY cash open, as risk appetite was buoyed by a solid consumer confidence report for December.
• SPX +1.49% at 3,878, NDX +1.48% at 11,235, DJIA +1.60% at 33,376, RUT +1.65% at 1,776.
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NOTABLE HEADLINES

APAC TRADE

EQUITIES

• APAC stocks traded with gains across the board following the positive lead from Wall Street.
• ASX 200 saw gains across almost all of its sectors aside from Material names and gold miners.
• Nikkei 225 eked gains as Real Estate names led the charge, but with gains capped as the JPY held onto most of its recent strength.
• Hang Seng and Shanghai Comp were firmer with the former opening with gains north of 2% as property names cheered reports via state media that China is to push the construction of major projects and equipment upgrades. The mainland meanwhile coattailed on the broader modest risk appetite seen after the US performance.
• US equity futures resumed trade with modest gains (ES +0.3%), but price action is somewhat contained in the pre-Christmas lull.
• European equity futures traded mildly higher with Euro Stoxx 50 future +0.4% after cash markets closed +1.8%.

FX

• DXY trundled lower throughout the session as it breached 104.00 to the downside before matching and then dipping under yesterday's 103.85 low.
• USD/JPY was softer, but more so as a function of the Dollar as JPY pairs traded with shallower losses.
• EUR/USD once again found support near its 10 DMA (1.0604) whilst GBP/USD moved back above 1.2100 amid the Dollar weakness; EUR/GBP traded flat.
• Antipodeans were mixed with the AUD supported by base metals and tailwinds from China. AUD/USD topped its 21 and 10 DMAs at 0.6741 and 0.6745 respectively. NZD/USD was suppressed as the AUD/NZD cross extended on gains above 1.0650 and toward 1.0700.
• PBoC set USD/CNY mid-point at 6.9713 vs exp. 6.9702 (prev. 6.9650)

FIXED INCOME

• 10yr UST futures posted modest gains but price action was contained after Treasuries steepened following the strong consumer confidence data stateside.
• Bund futures were flat with newsflow also quiet; the March 2023 contract found some overnight resistance just under 136.00 around 135.96.
• 10yr JGB futures were firmer overnight with the corresponding yield declining below 40bps.
• Japanese government is looking to sell JGBs worth some JPY 190tln for FY23/24 on a calendar basis, and looking to make cuts in short-term bond issuance, according to a draft document cited by Reuters

COMMODITIES

• Crude futures traded modestly higher overnight after oil prices rallied on Wednesday as part of the broader risk appetite seen across stocks and commodities, aided by bullish inventory data.
• Spot gold was slightly firmer but below yesterday’s USD 1,823.77/oz high with price action somewhat contained.
• Base metal futures were firmer across the board, aided by the softer Dollar and as APAC players reacted to reports that China is to push the construction of major projects and equipment upgrades.
• Shell (SHEL LN) suspended production at Prelude Floating LNG facility off Western Australia amid a fire, according to a spokesperson cited by Reuters
• Brazilian President-elect Lula's transition team to propose refining expansion plan and a fuel price stabilisation fund, with Petrobras (PBR) headed for a two-month business plan review, according to Bloomberg.
• Governor of Canada has determined the significant adverse effects of the Sukunka coal mine cannot be mitigated, and therefore the coal mine project cannot proceed, via Reuters.
• Brazil is to impose 14.88-14.93% countervailing duties on China's aluminium sheet products from March 31st 2023, according to the Chinese Commerce Ministry.

CRYPTO

• Bitcoin traded horizontally under USD 17,000 overnight with prices stuck near yesterday's APAC range.

NOTABLE ASIA-PAC HEADLINES

• China reports zero new COVID deaths in the mainland on Dec 21st vs zero a day earlier, according to Reuters.
• PBoC injected CNY 4bln via 7-day reverse repos with the rate maintained at 2.00%; injects CNY 153bln via 14-day reverse repos with the rate maintained at 2.15%; daily net injection CNY 155bln.
• Japanese government raises FY23 GDP growth forecast to 1.5% (from 1.1% in July); maintains FY23 Overall CPI forecast at 1.7%; cuts FY22 GDP growth forecast to 1.7% (from 2.0% in July), according to Reuters.
• Japanese PM Kishida said he wants Japanese industries to carry out investments of JPY 100tln as early as possible, according to Reuters.
• Tokyo will raise COVID-19 medical alert to the highest level, according to NHK.

DATA RECAP

• South Korean PPI Growth YY (Nov) 6.3% (Prev. 7.3%, Rev. 7.3%)
• South Korean PPI Growth MM (Nov) -0.2% (Prev. 0.5%, Rev. 0.5%)

GEOPOLITICS

RUSSIA-UKRAINE

• US Secretary of State Blinken said USD 1.85bln in additional US Military assistance to Ukraine will include the first transfer of the patriot air defense system, according to Reuters.

EU/UK

NOTABLE HEADLINES

• ECB's Centeno said data indicates inflation is reaching its peak in Q4 2022, via Reuters.
• ECB's de Guindos says, "the steps we have taken so far are going to have an impact on inflation, but we still need to do more".