HomeContributorsFundamental AnalysisMarket Participation is Light as Christmas Holiday Continues in Some EU Countries

Market Participation is Light as Christmas Holiday Continues in Some EU Countries


  • Continue market holidays in Europe keeps participation on the sidelines.


  • Japan Nov Retail Sales registered its 3rd consecutive increase (M/M: 1.2% v 1.3%e; Y/Y: 1.9% v 1.7%e).
  • BOJ Summary of Opinions for Dec Meeting saw CPI rising moderately into positive territory in the short run due to rise in energy prices.
  • China PBOC quarterly monetary policy meeting statement pledged more support for the real economy along with more “proactive” use of policy tools. Reiterated prudent policy to be flexible and appropriate.
  • China Nov Industrial Profits Y/Y: 9.0% v 24.6% prior.


  • US halted the distribution of Regeneron and Eli Lilly COVID antibody treatments, cited omicron efficacy concerns.


  • Markets closed in UK and Ireland (both Monday and Tuesday for Christmas holiday).


  • Yamal-Europe pipeline (delivers Russian gas to Western Europe) was sending the fuel back to Poland for 6th consecutive day.

Speakers/Fixed income/FX/Commodities/Erratum


Indices [Stoxx600 +0.19% at 483.96, FTSE closed, DAX +0.18% at 15,784.81, CAC-40 +0.08% at 7,091.94, IBEX-35 +0.35% at 8,593.50, FTSE MIB +0.29% at 27,095.00, SMI +0.52% at 12,852.28, S&P 500 Futures +0.17%].

Market Focal Points/Key Themes: European indices open modestly lower but later turned around to rade generally higher; light trading due to holidays; among sectors trending higher are materials and industrials; while underperforming sectors inluce financials and technology; Gorge confirms made offer for iXblue; no major earnings expected during the upcoming US session.


  • Energy: Gazprom [GAZP.RU] +1% (Has not booked gas transit capacity for exports via the Yamal-Europe pipeline for 7th day in a row).
  • Financials: Commerzbank [CBK.DE] -1% (press interview).
  • Telecom: Orange Belgium [OBEL.BE] +1% (acquisition).


  • Poland Fin Min Koscinski noted that 2022 average CPI was seen between 7.0-8.0% range (**Note: forecast raised after Poland energy regulator recently approved hikes in gas and electricity prices for households).
  • Hungary Central Bank Gov Matolcsy stated that the most effective measure against inflation was raising interest rates. Reiterated stance that rate hike cycle to continue in 2022 Base Rate to ‘catch up’ with the 1-week deposit rate during H1 2022.
  • Russia Foreign Min Lavrov noted that the talks with US on the security guarantees to take place immediately after Russian New Year holidays (**Note: Russian holidays end on Jan 9th).

Currencies/Fixed Income

  • FX price action was subdued as Various markets remained closed on Monday due to Christmas break.
  • TRY currency was softer by 5% as markets re-evaluate the Turkish govt measures on the Lira Deposits that looked to shield savers from a depreciating currency (**Note: Move followed a run of gains that snapped its seven-week falling streak for the Lira).

Economic data

  • (FI) Finland Dec Consumer Confidence: -3.5 v +1.2 prior; Business Confidence: 18 v 23 prior.
  • (NO) Norway Nov Retail Sales (includes auto/fuel) M/M: 0.9 v 0.9% prior.
  • (TR) Turkey Dec Capacity Utilization: 78.7% v 78.1% prior.
  • (TR) Turkey Dec Real Sector Confidence (seasonally adj): 110.1 v 112.0 prior; Real Sector Confidence NSA (unadj): 106.1 v 108.4 prior.- (RO) Romania Nov M3 Money Supply Y/Y: 14.7 v 15.7% prior.
  • (CH) Swiss weekly Total Sight Deposits (CHF): 722.3B v 722.7B prior; Domestic Sight Deposits: 650.0B v 645.7B prior.

Fixed income Issuance

  • None seen.

Looking ahead

  • 05:25 (EU) Daily ECB Liquidity Stats.
  • 06:00 (IL) Israel Nov Unemployment Rate: No est v 5.0% prior; Unemployment Rate (including covid effect): No est v 7.0% prior.
  • 06:00 (IL) Israel to sell bonds.
  • 06:25 (BR) Brazil Central Bank Weekly Economists Survey.
  • 06:45 (US) Daily Libor Fixing.
  • 07:00 (IN) India announces details of upcoming bond sale (held on Fridays).
  • 08:00 (UK) No Daily Baltic Dry Bulk Index this week.
  • 09:00 (FR) France Debt Agency (AFT) cancels weekly Bills.
  • 10:30 (US) Dec Dallas Fed Manufacturing Activity Index: 13.0e v 11.8 prior.
  • 11:30 (US) Treasury to sell 13-week and 26-week Bills.
  • 13:00 (US) Treasury to sell 2-Year Notes.
  • 16:00 (KR) South Korea Dec Consumer Confidence: No est v 107.6 prior.
  • 18:30 (JP) Japan Nov Jobless Rate: 2.7%e v 2.7% prior; Job-To-Applicant Ratio: 1.16e v 1.15 prior.
  • 18:50 (JP) Japan Nov Preliminary Industrial Production M/M: 4.8%e v 1.8% prior; Y/Y: +2.9%e v -4.1% prior.
  • 22:00 (TH) Thailand Central Bank to sell THB50B in 3-month bills.
  • 22:30 (HK) Hong Kong to sell 3-month and 6-month Bills.
  • 23:00 (MY) Malaysia Nov Trade Balance (MYR): 19.0Be v 26.3B prior; Exports Y/Y: 29.0%e v 25.5% prior; Imports Y/Y: 29.9%e v 27.9% prior.
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