Today's news headlines:
'Sunak heads for crunch talks with unions as strikes hobble UK'. Striking continues into the second week of the new year, piling the pressure on Rishi Sunak to find a solution to widespread industrial action. There is expected to be some minor relief this week as NHS and rail workers' unions meet with the government for yet another pay negotiation. With two years until the next general election, it looks like a lot to turn around for the PM, with the economy the worst performer in the G7 as GDP lags behind its neighbours. (Bloomberg)
'Asia stocks on track to enter bull market as China rally extends'. Following China's abandonment of its contentious zero-Covid policy, Asian markets have recovered almost 20% from their October lows as the regulatory environment begins to look more appealing for the year ahead. Crackdowns in the tech sector appear to be abating, at least in the near future, with Goldman Sachs expecting more policy pivots to come. (Bloomberg)
Equities are broadly higher this morning while the Dollar declines amid some softer expectations about the path of US interest rates. Sovereign bond yields in the US and EMEA have risen this morning. Elsewhere, WTI has gained just over 2% in early trading.
German Industrial Production MoM (Nov): 0.2% (est. 0.2%)
Eurozone Sentix Investor Confidence (Jan): 9:30AM
Eurozone Unemployment Rate (Nov): 10:00AM
US Consumer Credit MoM (Nov): 8:00PM
UK Monetary Policy Committee Member Huw Pill speaks: 11:45PM
GBP/USD – 1.2149
GBP/EUR – 1.1364
EURUSD – 1.0691
USDCAD – 1.3399
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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.