Morning Call Script - 20 Dec 2023
Overnight asset drivers & the impending data calendar
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What’s Moved Overnight
PBoC left the Loan Prime 1Y and 5Y Rates unchanged at 3.45% and 4.2% respectively
USD seasonals kicked in yesterday with AUD and NZD leading the charge, both +1.65% on the week.
ATH watch across US Indices despite the Apple patent news (Axios) and FedEx revenue cut on weak demand (FT). SPX drift towards 4800 has led to a positive APAC session ex China (Nikkei +1.6%, CSI 300 down 70bps to 3311).
Elsewhere, global Central Bankers are still working, no extended festive break... Orr sees no room to cut (yet), Bostic is in no urgency, Barkin sees solid progress on inflation, Goolsbee is confused by the market's reaction, everyone keeps seconding guessing when Powell will cut (according to Nick T from WSJ) and of course BoJ are still pumping liquidity into the global system (Ueda didn't even give a hint of exit timing)
Bloomberg - RBNZ Assessing GDP Data, No Opinion Yet on Rates, Governor Adrian Orr Says
Bloomberg - Fed’s Raphael Bostic Doesn’t See Urgency to Cut Interest Rates - Bloomberg
Reuters - Fed's Barkin: Central bank 'nicely positioned' amid inflation retreat
Reuters - Goolsbee 'confused' by market reaction to Fed chief's rate-cut remarks
WSJ - Powell’s Pivot Sows Confusion Over When and How Fast Fed Will Cut - WSJ
Reuters - BOJ keeps ultra-loose policy, offers few hints on exit timing
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This piece will focus on the key market narratives trending on Harkster.com. What users of our platform are consuming, what themes are top of mind and the key risk events they're researching. It will also document the top 10 links and podcasts consumed by our users over the previous day.
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Have a great day, and keep smiling!
Podcast for the Commute
The Day Ahead
EUR (07:00): German PPI
GBP (07:00): Core and Headline Inflation
USD (15:00): Consumer Confidence and Existing Home Sales
USD (18:00): 20yr bond auction
CAD (18:30): BoC Summary of Deliberations
ECB Speak - Lane (14:00)
Riksbank Speak - Thedeen (14:00)
Stay informed throughout the day with our new commentary channel (‘Intraday Market Colour’) highlighting key notes, topics du jour, and HarksterHQ’s market updates around key data points and headlines.
Available on the HarksterPRO Research Platform.
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