- China stocks subdued again ahead of the Chinese New Year with Shanghai slightly up (+0.49%) and Hang Seng down (-0.12%)
- Australia’s ASX climbed above 7,400 led by miners
- Japan’s Nikkei under-performed erasing all gains from yesterday’s BOJ-fueled rally
- India’s Nifty 50 enthusiasm from yesterday also faded, the market ended down slightly ( -0.32%)
- European bourses are down across the board so far this morning on ECB official’s hawkish tone at Davos
- USD climbs on safe-haven bids but still remains in negative territory; the yen regains footing
Overall pretty quiet, no major market movers…everyone waiting on ECB minutes
“The December ECB minutes will be scrutinized for some clues about the size of hikes in February and March, as will the numerous number of ECB speakers at the Davos WEF. Of particular note within the minutes will be what persuaded the hawks to back down from demanding a further 75 bps rate hike in December, with Lagarde’s comment that rates will increase at a “steady pace” perhaps indicating perhaps offering a clue that a steady pace of 50 bps hikes through to the March meeting, barring unforeseen development, was the compromise. Villeroy’s comments yesterday that Lagarde’s ‘guidance’ of two further 50 bps hike in Q1 ‘remains valid’, and Rehn’s saying that ‘significant’ rate hikes are warranted, along with the confirmation of a fresh high of 5.2% for Eurozone December core CPI, suggest that the ECB is no mood to relent on its hawkish message.” -Reuters
US Data Today
Metals
BHP expects China to underpin commodities demand in 2023
Gold edges higher as investors weigh Fed slowdown chances
Copper falls on firmer dollar, low demand ahead of China holiday
Iron ore futures rally on China demand optimism
Energy
Davos 2023-IEA’s Birol expects tighter energy markets in 2023
Poll: U.S. crude stockpiles dipped last week, products likely higher
Japan officially regained the spot as the world’s biggest LNG importer, pushing China to second place.
