Today's news headlines: 

‘Boris Johnson rules out further Covid restrictions in England before Christmas’. Following major backlash from the Cabinet, Boris Johnson has abandoned proposals to introduce a circuit breaker lockdown over Christmas. According to the Prime Minister, there isn’t enough evidence to justify additional restrictions, but if the Omicron situation continues to deteriorate in the next few weeks, further restrictions in the New Year will not be ruled out. The self-isolation period after testing positive for Covid for the double-vaccinated has been cut to seven days upon receiving two negative lateral flow results. (Financial Times)

‘China developers hit by record downgrades after Evergrande crisis’. The Evergrande crisis has hampered sentiment on the Chinese property sector over the last year, with the major ratings agencies—Moody’s, Fitch, and S&P—handing out sweeping downgrades to companies’ corporate debt. China’s economy has failed to maintain its impressive growth trajectory, which has only compounded issues that have emerged in the property space. Citi has suggested companies are beginning to focus on survival rather than growth as bottom lines come under pressure. (Financial Times)

Today

Stocks bounced back yesterday, with the S&P 500 closing 1.78% higher. Across the pond, the FTSE 100 gained 1.4% as Chancellor Rishi Sunak unveiled a £1bn support package for the hospitality sector. The US 10-year bond yield continues to drift higher this week, trading at 1.46% this morning. Elsewhere, most major currency pairs continue to trade rangebound.

Events

UK final Gross Domestic Product q/q: 1.1% vs 1.3% previously
US final GDP q/q: 1:30PM
US CB Consumer Confidence: 3:00PM
US Existing Home Sales: 3:00PM

Interbank rates:

GBP/USD – 1.3274
GBP/EUR – 1.1778
EUR/USD – 1.1269
USD/CAD – 1.2910

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