- China November CPI +0.7% vs +0.7% expected
- China likely to cut RRR rate next year – report
- Japan PM Takaichi asked about rising yields, says closely watching market moves
- Zelensky signals Ukaine’s answer to Trumps peace plan will come Wednesday
- Trump: I hear that autopen might have signed the appointments of Fed board governors
- Japan November corporate goods prices index +2.7% vs +2.7% expected
- Japanese Reuters Tankan December manufacturing +10 vs +17 prior
- Trump to kick off final Fed interviews this week: Hassett remains in poll position
- Trump says he will be meeting with “a couple” people for the Fed chair job
- New Zealand October migration +2400
Markets:
- Gold down $3 to $4206
- US 10-year yields down 0.4 bps to 4.18%
- WTI crude up 7 cents to $58.32
- S&P 500 futures flat
- JPY leads, NZD lags
There wasn’t much in terms of market moves to start the day. The main one was silver hitting a fresh record high above $61 but it was fleeting move and it’s now given back most of the gains. What got some of the market’s attention was Trump talking about Biden using autopen to appoint Fed Governors. That’s being taken as a joke and it should be noted that they’re approved by Congress so it’s hardly like undoing an executive order. In any case, it’s another example of how badly Trump wants lower rates.
In China, the CPI headline was in-line but the m/m reading was soft and so was PPI. That’s couple with fresh stimulus talk in China and a report about an RRR cut. It all tees up an interesting 2026 as some recent profit taking has hit Chinese stock markets.
Looking ahead, it’s Fed day but we will also look out for Zelensky’s response to Trump’s peace plan. Optimism is low but you never know.
This article was written by Adam Button at investinglive.com.