Notes/Observations
- US political uncertainty a headwind for USD for the time being
- Holiday thin trading week; muted trading; European markets are softer in quiet trade with several markets closed or finish early ahead of Christmas.
- Asia closed mixed in holiday thin trade (Note: Nikkei225 was closed for public holiday)
Asia:
- China Finance Ministry stated that progress being made in trade talks with US last week. MOFCOM announced it would not levy tariffs on 94 items, including fertilizer and iron ore, in addition to adjusting or eliminating other import/exports tariffs
Americas:
- Treasury Secretary Steven Mnuchin called top executives from the six largest U.S. banks over the weekend regarding market stability
- Congress still searching for a spending deal as partially govt shutdown underway; President Trump says the govt shut down could be “a long stay”
- Treasury Sec Mnuchin: Trump “never suggested firing” Fed Chair Powell, Trump did not believe he has the right to fire Powell
- US Sec of State Pompeo: “counting on” a second summit between Trump and N. Korea’s Kim, there has been some progress on denuclearizing North Korea despite the perception otherwise
Energy:
- UAE Energy Min (OPEC president) Mazrouei: OPEC and non-OPEC monitoring committee to meet in Baku at the end of February or the start of March; additional measures could be discussed that extends the recent production cut deal for an additional 5-months Macro
SPEAKERS/FIXED INCOME/FX/COMMODITIES/ERRATUM
Equities
Indices [Stoxx600 closed, FTSE -0.49% at 6,688.25, DAX closed, CAC-40 -0.93% at 4,650.66, IBEX-35 -0.59% at 8,505.90, FTSE MIB -0.97% at 18,397.19, SMI closed, S&P 500 Futures +0.46%]
Market Focal Points/Key Themes: Equities European Indices trade lower across the board in light trade, following on from weakness in Wallstreet on Friday and mixed Asian markets. US futures are pointing higher in a holiday shortened week. On a light morning for corporate news Playtech shares trade lower after new Italian Gambling taxation laws is set to reduce EBITDA for next year. Chamberlin and Marie Brizard Wine and Spirits are among other notable fallers after earnings and guidance. Meanwhile Gama Aviation trades higher after a contract win with April Group rises after a tax reassessment notification. In the US shares of DellTech trades sharply lower after stockholders approve Class V transaction.
- Consumer discretionary: Gama Aviation [GMAA.UK] +3.5% (awarded few contract)
- Financials: Euronext [ENX.FR] -1% (update on Oslo Børs VPS cash tender offer), April Group [APR.FR] +1.5% (affirms outlook)
- Healthcare: Novacyt [ALNOV.FR] -1.5% (trading update)
- Technology: Playtech Ltd [PTEC.UK] -8% (Italian gambling taxation update)
- Materials: Chamberlin [CMH.UK] -13% (earnings), Nanoco Group [NANO.UK] +6.5% (completed significant milestone)
Speakers
- Italy PM Conte: Govt will keep pursuing its expansionary economic policy; vowed that govt to serve out its full 5-year term
- Israel Central Bank Gov Yaron: Forex rate should be set by market forces with minimal intervention
Currencies/Fixed Income
- US political uncertainty a headwind for USD for the time being due to continued concerns over the Fed autonomy and the reality of a partial shutdown of US govt underway
- EUR/USD still within recent ranges but probing the 1.14 handle in dull trade. USD/CHF 0.9945 and GBP/USD at 1.2660
Economic Data
- (NL) Netherlands Q3 Final GDP Q/Q: 0.2% v 0.2% prelim; Y/Y: 2.4% v 2.4% prelim
- (TW) Taiwan Nov Industrial Production Y/Y: 2.1% v 3.3%e
- (CH) Swiss Weekly Total Sight Deposits (CHF): 575.5B v 576.3B prior; Domestic Sight Deposits: 474.5B v 471.6B prior
**Fixed Income Issuance**
- (HK) Hong Kong sold total HK$53.9B in 3-month, 6-month and 12-month bills
Looking Ahead
- (UR) Ukraine Central Bank (NBU) Dec Minutes
- 05:25 (BR) Brazil Central Bank Weekly Economists Survey
- 06:00 (IL) Israel to sell Bonds
- 06:00 (RO) Romania to sell RON300M in 3.5% 2022 Bonds
- 06:45 (US) Daily Libor Fixing
- 07:00 (IN) India announces details of upcoming bond sale (held on Fridays)
- 07:00 (CL) Chile Nov PPI M/M: No est v 0.9% prior
- 08:00 (PL) Poland Nov M3 Money Supply M/M: 0.8%e v 1.3% prior; Y/Y: 8.5%e v 8.3% prior
- 08:30 (US) Nov Chicago Fed National Activity Index: 0.20e v 0.24 prior
- 08:50 (FR) France Debt Agency (AFT) cancels BTF Bill auctions
- 09:00 (MX) Mexico Nov Unemployment Rate (Seasonally Adj): 3.2%e v 3.2% prior; Unemployment Rate (unadj): 3.2%e v 3.2% prior
- 09:30 (EU) ECB announces Covered-Bond Purchases
- 11:30 (US) Treasury to sell 3-Month and 6-Month Bills
- 13:00 (US) Treasury to sell 2-Year Notes
