China stokes liquidity fears

Today's news headlines: 

‘China urges banks to boost property loans as default fears grow’. China has called on banks to increase lending in its property sector after two consecutive quarterly declines, stoking fears over the nation’s liquidity crisis. In addition, China announced that borrowing by property firms to fund mergers and acquisitions will not violate the ‘three red lines’ policy designed to limit the nation’s rising debt levels. (Bloomberg)

‘Banks in talks with UK regulator about loans for energy suppliers’. Regulators are in talks with Barclays and NatWest to provide loans to help surviving energy suppliers take on the customers of the UK’s 26 failed suppliers. The loans will allow energy providers to spread out additional costs of taking on the wave of new customers, mitigating an expected rise in household energy bills this year. Analysts warn annual household energy bills could rise by more than £700 in 2022, but the proposed loans could reduce the figure by 10%.


Today

US and European equity futures were little changed overnight ahead of Friday’s key Non-Farm Payroll release while sovereign yields ticked marginally higher. The US Dollar drifted lower after yesterday’s close, and oil prices climbed to a seven-week high following supply constraints from OPEC+ to North America.

Events

German Industrial Production (Nov): -0.2% (est. 1.0%)
French Industrial Production (Nov): -0.4% (est. 0.5%)
Eurozone Consumer Price Index YoY (Dec): 10:00AM
US Non-Farm Payrolls (Dec): 1:30PM


Interbank rates:

GBP/USD – 1.3540
GBP/EUR – 1.1975
EUR/USD – 1.1307
USD/CAD – 1.2726

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