Today's news headlines:
'UK braced for widespread strikes as government digs in'. Nurses, ambulance workers, postal and railway staff, and customs and immigration workers will all strike this week over an unresolved pay dispute with the UK government. The general secretary of the Royal College of Nursing, Pat Cullen, has said that Ministers have 48 hours after Tuesday's strike to engage in discussions over pay, after which more strike action will be announced in the New Year if a resolution is not found. Cabinet Minister Oliver Dowden has said that he stands by the decision to go along with recommendations in July for a £1,400 increase for most NHS staff, while health leaders warn that continued NHS disruption could seriously impact public safety. (Financial Times)
'Covid outbreak throws Chinese factories and supply chains into chaos'. Earlier this month, China decided to abandon its zero-Covid policy and scrap many of the testing and travel restrictions that its people had been living under for almost three years. However, the country's reopening has allowed the virus to run rampant through several big cities and cause widespread business disruption and staff shortages. Factory workers and truck drivers are falling ill, causing massive disruption to supply chains and threatening the country's overall economic output. (Financial Times)
European stocks are struggling to rebound after the European Central Bank eased the pace of its interest rate hikes but also displayed hawkish sentiment as Christine Lagarde warned that there were more rate hikes on the agenda for 2023. Investors will be closely watching the German Business Climate index this morning for an indication of the strength of the Eurozone economy.
German ifo Business Climate: 9:00AM
UK Confederation of British Industry Industrial Order Expectations: 11:00AM
Canadian Industrial Product Price Index m/m: 1:30PM
Canadian Raw Materials Price Index m/m: 1:30PM
US NAHB Housing Market Index: 3:00PM
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*Indicative interbank rates taken on the day of writing. Please speak to your Dealer to find out the current rates available for you.