• Asian equities were subdued following on from the mostly negative lead from Wall St
• US stocks declined at the open, but then finished off lows and the Nasdaq fully recovered from a near-3% drop as yields wavered
• DXY is softer and back on a 95 handle as activity currencies gain and EUR/USD gains a firmer footing above 1.13
• Fed Chair Powell’s prepared remarks noted the economy has rapidly strengthened despite the ongoing...

• Indecisive and somewhat choppy trade amid a thin docket; Euro Stoxx 50 -0.1%, ES U/C, NQ -0.3%
• In FX, the DXY tested 96.00 to the upside with peers mixed but relatively contained while USTs/EGBs recovered from initial pressure
• US Senator Manchin reportedly no longer supports a USD 1.8trl Build Back Better counterproposal, via Washington Post
• US-Russia talks have begun and initial commentary seemingly downplays the prospect of a...

• Asia-Pac markets traded mixed and US equity futures were initially pressured after last Friday's post-NFP weakness
• Ongoing Omicron woes and the absence of Japanese participants further added to the uninspired mood
• China reported its first community transition of the Omicron variant in Tianjin which is a gateway city to Beijing
• In FX, the DXY is firmer but sub-96.00, EUR/USD has reclaimed 1.13, USD/JPY remains on a 115...

• European bourses/US futures are mixed but generally contained amid minimal newsflow pre-NFP/Fed speak; ES +0.2%
• DXY remains downbeat but off worst and yet to test 96.00 with main peers little changed and both EUR and GBP unreactive to respective data
• Core debt is similarly confined while crude continues to climb absent catalysts though geopols draw focus
• China may still ease policy in Q1 despite the hawkish Fed, according to reports citing...

• Asia-Pac equities traded mostly higher; US equity futures held onto mild gains
• In FX, DXY was subdued, EUR/USD and GBP/USD probed 1.1300 and 1.3550 respectively
• Fed's Bullard (hawk, voter) said the first rate hike could come in March and said the balance sheet run-off should start shortly after
• China may still ease policy in Q1 despite the hawkish Fed, according to reports citing China's Securities Journal
• Crypto...

• European bourses are pressured, Stoxx 600 -1.0%, following a downbeat APAC handover given the FOMC Minutes spillover; NQ, -0.4%, continues to lag
• European Banking names are the primary outperformer given yield action as the US 10yr nears 1.75% and the German equivalent 0.00% (best -0.033%)
• DXY is positive but has been pressured as FX peers receive a boost for the broad yield action; JPY leads and AUD lags in a continuation of APAC...

• Asia-Pac equities succumbed to the downbeat handover from Wall Street after the FOMC minutes
• FOMC minutes said rate lift-off may be warranted sooner or at a faster pace than was earlier anticipated
• FOMC minutes noted that Fed balance sheet reduction could come relatively soon after rate lift-off
• Fed Fund futures see around a 70% chance of a Fed hike at the March meeting
• US equity futures drifted lower overnight (ES...

• European bourses are mixed and fairly contained while US futures faded a brief moved into positive territory amid minimal newsflow; ES -0.10%, NQ -0.4% currently lags
• DXY is downbeat but is yet to test 96.00 to the downside with G10 peers, ex-CAD given crude, buoyed and JPY outperforming after yesterday's pressure
• US lawmakers have commenced early discussions regarding another round of COVID stimulus spending, via Washington Post
• North Korea...

• Asia-Pac equities traded mostly in the red and US equity futures were subdued
• FX, fixed income, crude and precious metals were more contained overnight
• Fed's Kashkari (2023 voter) expect the Fed balance sheet to come down, but not to pre-pandemic levels
• North Korea fired a projectile which landed outside of Japan's Exclusive Economic Zone (EEZ)
• China Huarong Asset Management slumped over 50% after a nine-month trade...

• European bourses are firmer, Euro Stoxx 600 +0.8%, amid minimal fresh newsflow; ES +0.4%
• Asia-Pac stocks traded mixed; Mainland China and Hong Kong underperformed
• DXY was supported as USD/JPY took out its 2021 high and nears 116.00; though, the DXY did briefly dip on GBP upside given associated yield catch-up action
• China is requiring security checks before domestic tech firms list overseas from Feb 15th
• Sarah Bloom...

• Asia-Pac stocks eventually traded mixed; Mainland China and Hong Kong underperformed
• US and Eurozone equity majors kicked off 2022 with gains; Apple briefly hit USD 3tln market cap
• DXY was supported as USD/JPY took out its 2021 high; AUD was underpinned by firmer coal prices
• China is requiring security checks before domestic tech firms list overseas from Feb 15th
• Sarah Bloom Raskin has emerged as the leading...

• Asia-Pac equities mostly rose in tandem with the gains seen on Wall Street
• In FX, the DXY retained 96.00+ status, USD/JPY met sellers at 114.50, others were uneventful
• Data suggests protection against Omicron COVID variant starts to wane 10 weeks after booster vaccination
• Japan will not send top government officials to the Beijing Winter Olympics, but stopped short of calling it a boycott
• Newsquawk desk will close at...

• A firmer but contained start for European bourses following a similar APAC handover; US futures are positive but in a holding pattern pre-data
• In FX, the DXY has been pressured to near 96.00 at worst to the benefit of peers as Cable reclaims 1.3400 sending EUR/GBP below 0.8450
• UK PM Johnson will not make an announcement this week on whether COVID restrictions are needed post-Christmas; waiting for more hospitalization data, according to...

• Asia-Pac equities traded modestly higher amid some tailwinds from Wall Street
• US equity futures resumed trade relatively flat with an upside bias
• In FX, DXY held onto 96.000, EUR/USD narrowly outperformed, TRY saw later strength
• UK and Scottish studies suggested the risk of hospitalisation from the Omicron variant is much lower than the Delta variant
• Overnight focus was on Tencent declaring an interim dividend...

• European bourses and US futures remains contained in idle trade ahead of US data in holiday-thinned conditions; ES -0.2%
• In FX, the DXY is pressured sub-96.50 but hasn't deviated too far from the mark with peers, ex-JPY, benefitting; core debt continues to drift
• UK HSA real-world Omicron data will be mixed; variant is less severe but may still cause large hospitalization numbers, via Politico
• Oxford and AstraZeneca are working on an...

• An indecisive tone was seen across APAC markets overnight
• US equity futures traded flat with a downside bias
• In FX, DXY traded on either side of 96.500, USD/JPY briefly dipped under 114.00 and AUD/JPY drifted lower
• Oxford and AstraZeneca are working on an Omicron-targeted version of their vaccine
• UK PM Johnson does not think there is enough evidence to justify any tougher restrictions before...

• Sentiment remains positive after a constructive APAC handover, though crude has been choppy and EGBs have seemingly decoupled from brief/broader risk jitters
• European bourses are firmer though gains have trimmed since the cash open while US futures remain bid; ES +0.6%, RTY, +0.1%, lags somewhat
• In FX, the USD has come under pressure taking the index sub-96.50 with peers somewhat mixed as the antipodeans/GBP lead
• The first US death...

• Asia-Pac stocks traded with mild gains following the downbeat lead from Wall Street
• US equity futures edged higher overnight, with the NQ the outperformer and the RTY posting the shallowest gains
• In FX, DXY drifted under 96.500, NZD narrowly outperformed and USD/TRY slumped under 14.0000
• The first US death attributed to the Omicron variant reported in Harris County, Texas
• Turkish President Erdogan said Turkey is...

• European bourses are pressured, but off lows Euro Stoxx 50 -1.4%, in risk-off trade as further COVID restrictions are implemented/touted
• Albeit, sentiment picked up on Moderna's (+5.4% pre-mrkt) prelim. booster update ahead of a 13:00GMT/08:00EST press conference
• Moderna's prelim. booster data shows a boost to neutralising antibody levels 37-fold higher than pre-dose levels
• In FX, DXY has been choppy but retains 96.50 with performance...

• Asia-Pac equities traded lower across the board following the volatile session on Wall Street on Friday
• US equity futures saw losses overnight whilst T-note futures edged higher
• In FX, DXY held onto most of Friday’s gains, USD/JPY eventually dipped under 113.50, TRY saw early weakness
• US Senator Manchin said he cannot support President Biden’s Build Back Better bill
• UK Brexit Minister Frost has resigned; Foreign...

Equities are pressured after a downbeat APAC handover with Quad Witching in focus; ES -0.4%, NQ -0.8%

In FX, the DXY has staged a marked recovery retaking 96.10 to the broad detriment of peers; Cable loses 1.3300, EUR/USD nears 1.1300

WTI and Brent are pressured given broader risk appetite and seemingly constructive geopolitical developments re. Iran

UK will reportedly drop key ECJ demand in an effort to de-escalate tensions with the...

• Asian equity markets were mostly lower with sentiment in the region downbeat after the tech-led declines in the US
• In FX, DXY dipped back under 96.00, EUR/USD eyed 1.1350 and USD/JPY briefly dipped below 113.50
• UK will reportedly drop key ECJ demand in an effort to de-escalate tensions with the EU
• UK Conservative Party lost the North Shropshire seat for the first time in history
• US Senate approved the Uyghur bill...

• European equities are firmer across the board; US futures extend on post-FOMC gains
• In FX, DXY has pulled back further, high-betas outperform and havens lag
• TRY again weakened as Turkish President Erdogan replaced two deputy finance ministers
• Looking ahead, highlights include BoE, ECB, Banxico, press conferences from the ECB, US IJC and the UK Conservative bi-election

CORONAVIRUS UPDATE

US CDC advisers are to...

• The FOMC doubled the QE tapering pace and now sees three rate hikes in 2022; Fed Chair Powell avoided hawkish curveballs
• Chair Powell said the Fed has not taken a position on whether it should pause between the end of the taper and first-rate hike
• Market sentiment saw a knee-jerk lower on the statement and SEP release before risk appetite intensified during the presser
• Asian equity markets traded mixed as the region digested the FOMC...

• Equities remain mixed but with a cautious undertone, ES -0.1%, NQ -0.4%; as newsflow is focused on COVID/geopolitics going into the FOMC
• DXY is softer but pivoting 96.50 with peers mixed and GBP leading after UK CPI; USTs are unchanged, EGBs are pressured, led by Gilts on BoE tightening repricing
• Reports indicate UK PM Johnson will hold a Omicron press conference today, unclear on content; gov't is said to be expecting a record daily case print...