So quiet one can hear the new year eve ball drop

Notes/Observations

- Numerous global markets closed for New Year holidays; most of EU closed but some half-day equity sessions for Belgium, France, The Netherlands, Portugal, UK.

- TTN wishes all the best, healthy and profitable 2022.

Asia

- China Dec Manufacturing PMI: 50.3 v 50.0e (2nd month of expansion).

- South Korea Dec CPI registered its 9th month above target and hit its the highest annual pace since 2011 (Y/Y: 3.7% v 3.7%e).

- BOK Gov Lee reiterated stance that would continue adjusting policy with timing to depend on economy.

Europe

- Russia govt spokesperson noted that Russia was happy with outcome of Putin-Biden call. US side showed willingness to tackle core Russian concerns; Discussed Russia's desired security guarantees. Two leaders agreed to resume talks between two administrations after New Year; Phone conversations created good atmosphere before talks begin next month on three tracks. Not clear yet what a compromise would look like.

Speakers/Fixed income/FX/Commodities/Erratum

Equities

Indices [Stoxx600 +0.06% at 488.25, FTSE -0.27% at 7,383.20, DAX closed, CAC-40 -0.27% at 7,153.58, IBEX-35 closed, FTSE MIB closed, SMI closed, S&P 500 Futures -0.04%].

Market Focal Points/Key Themes: Most indices closed for holiday, with few exceptions only open for half-day trading; no major events expected during US session, although markets remain open for the rest of the day.

Equities

- Consumer discretionary: Nestle [NESN.CH] -1% (new share buyback).

- Industrials: Hunter Douglas [HDG.NL] +70% (to sell 75% stake), Metso Outotec [MOCORP.FI] -1% (divests unit).

Speakers

- Turkey President Erdogan reiterated view that TRY currency (Lira) volatility was temporary and urged that the citizens keep their savings in the national currency. Reiterated his belief that lower interest rates will lead to lower inflation.

- China said to cut subsidy standard for new EVs by 30% y/y in 2022; To end subsidy policy for purchasing new EVs on Dec 31, 2022.

Currencies/Fixed Income

- FX price action was little changed as many market participants stayed on the sidelines for year-end holidays.

- EUR/USD drifted slightly higher in a quiet session to probe the 1.1330 area.

- GBP/USD above the 1.35 area while USD/JPY stayed above the 115 handle.

Economic data

- (NL) Netherlands Nov Retail Sales Y/Y: 6.9% v 4.3% prior.

- (ZA) South Africa Nov M3 Money Supply Y/Y: 6.4% v 4.2%e; Private Sector Credit Y/Y: 2.5% v 1.3%e.

- (FI) Finland Oct Final Trade Balance: -€0.6B v -€0.6B prelim.

- (TR) Turkey Nov Trade Balance: -$5.4B v -$5.3Be.

- (CN) Weekly Shanghai copper inventories (SHFE): 38.2 v 27.2K tons prior.

- (CH) Swiss Q3 Foreign exchange transactions (CHF): 2.8B v 5.4B prior.

- (CZ) Czech Nov M2 Money Supply Y/Y: 8.0% v 8.2% prior.

- (HK) Hong Kong Nov M3 Money Supply Y/Y: +1.8% v -10.0% prior.

- (CN) China Q3 Final Current Account: $73.6B v $80.1B prelim.

- (SL) Sri Lanka Dec CPI Y/Y: 12.1% v 9.9% prior.

Fixed income issuance

- (IN) India sold total INR70B vs. INR240B indicated in 2028, 2031 and 2061bonds.

Looking ahead

- 05:25 (EU) Daily ECB Liquidity Stats.

- 05:30 (IN) India Nov Fiscal Deficit (INR): No est v 201.8B.

- 05:30 (IN) India Weekly Forex Reserve w/e Dec 24th: No est v $635.7B prior.

- 06:00 (UK) No DMO bill action for this week.

- 06:45 (US) Daily Libor Fixing.

- 07:00 (IN) India announces upcoming bill issuance (held on Wed).

- 07:00 (IN) India Nov Eight Infrastructure (Key) Industries: No est v 7.5% prior.

- 07:00 (CL) Chile Nov Unemployment Rate: 7.8%e v 8.1% prior.

- 07:00 (CL) Chile Nov Retail Sales Y/Y: 19.7%e v 22.7% prior; Commercial Activity Y/Y: No est v 13.20 prior.

- 07:00 (CL) Chile Nov Manufacturing Production Y/Y: 5.0%e v 1.5% prior; Industrial Production Y/Y: No est v 1.3% prior; Total Copper Production: No est v 474.9K prior.

- 08:00 (UK) No Daily Baltic Dry Bulk Index this week.

- 10:00 (MX) Mexico Nov Net Outstanding Loans (MXN): No est v 4.701T prior.

- 10:00 (CO) Colombia Nov: $4.0Be v $3.8B prior.

- 11:00 (EU) Potential sovereign ratings after European close.

- 13:00 (US) Weekly Baker Hughes Rig Count.

- 19:00 (KR) South Korea Dec Trade Balance: $2.3Be v $3.1B prior; Exports Y/Y: 23.9%e v 32.0% prior (revised from 32.1%); Imports Y/Y: 40.0%e v 43.6% prior.