Observations + Charts
Europe and US futures are trying to rebound.
Asia responded to a second consecutive down day following US session.
China ended mixed, seeing a volatile day with more pressure on real estate developers. HK tried to come back in the afternoon ending flat.
China 10yr yields at Apr20 lows as traders price in additional RRR cuts.
HSTECH still trading nowhere near the key support 3,600 while CSI300 ended in red for a 3rd session in a row.
Japan ended mixed w/final PMIs confirmed manuf contracted at its fastest pace in 10m in Dec.
Elsewhere- India remains the bright spot - still trading near the highs helped by real estate names.
Europe trying to rebound after turning defensive this week amid overbought conditions and stretched positioning and sentiment indicators.
France’s CPI was inline w/exp, but accelerated in Dec vs. Nov, and Germany’s regional readings did the same. EU yields firmer across the region.
EU cyclicals still in the red for a 5th d in a row. Safe pockets in the factor pad leading again.. EU divi yield, EU value, EU quality.. +40/30bps.
Energy (Oil grinding higher), H/C and Real Estate leading the way while Retail lagging on JD/ and Adidas.
Transport names higher again on street upgrade MASKB HLAG DSV..
Luxury names trying to rebound w/EU luxury basket testing key trend.
DXY -32bp. Brent +105bp. US nat gas +350bp and +200bp in Europe. Copper +20bp. Bitcoin unch. Gold +35bp.
US futures are in the green w/ESH4 +6.50, HIWH4 +54.00, RTYH4 +11.40 and NQH4 +29.50.