US Session (12/21/2021)

Stocks rebounded following their worst three-day decline since September, as investors sought riskier assets. treasuries fell.

The technology-heavy Nasdaq 100 soared more than 2%, led by chipmaker Micron Technology Inc., which jumped on an upbeat outlook. Nike gained ground as revenue in North America grew, offsetting a decline in China. Pfizer Inc. and Merck & Co. closed at session lows after it was reported that the US Food and Drug Administration was expected to approve their medications to treat coronavirus as early as this week.

Biden said he still has a chance to reach an agreement with Democratic Senator Manchin in order to have his nearly $2 trillion economic plan passed by Congress. He's also thinking about easing travel restrictions for persons coming from southern African countries where the omicron version of coronavirus was discovered.

Earlier today, the global investment committee of Credit Suisse Group AG reduced its stock allocation from overweight to neutral, citing increased risks from the omicron variant.

Melt Up - Overview, When It Occurs, Practical Example

Asia Session (12/21/2021)

A global stock rebound slowed in Asia as investors weighed uncertainty about the economic impact of the omicron virus strain and a hazy outlook for US fiscal stimulus.

Hong Kong was boosted by a rally in technology shares, while markets in China and Japan remained stable. Futures in the US fluctuated after the S&P500 ended three days of declines and the tech-heavy Nasdaq100 gained more than 2%.

The return of risk appetite on Tuesday fueled a surge in commodities while reducing demand for safe havens. Crude oil and treasury yields remained higher, while the dollar index remained unchanged.

A strong 20-year auction highlighted broader, structural demand for US government bonds in the face of a savings glut and a range of economic risks.


Europe Session (12/21/2021)

Equities gained with US equity futures Tuesday on bets that vaccinations may help manage the omicron virus spread and signals that US President Biden could relaunch his $2 trillion economic agenda.

As commodities rose, European stocks recovered, with miners leading the way. S&P 500 and Nasdaq 100 futures contracts were also in the green, indicating that the market has stabilised after a global equity index plunged the most this month on Monday. A comeback in Japan and a surge in Chinese property developers boosted Asian stocks.

Investors are assessing economic threats from the development of the omicron virus variant and a hawkish central-bank tilt as markets swing into the Christmas season. Despite the fact that Democratic Senator Joe Manchin rejected President Biden's tax-and-spending proposal on Sunday, a phone conversation between the two has sparked hope that the agreement isn't dead.

Treasury rates climbed, the dollar remained unchanged, and crude oil prices rose. During a power shortage in France, European electricity costs soared to new highs.

Biden Administration to create Covid testing facilities in New York before Christmas; adding 1,000 military members to aid hospitals; 500 million at-home test kits to be free in January; making 2,000 new jobs in Austin tech hub. - Senior Official

Japan's PM Kishida: Drafting a digital infrastructure proposal to be completed by March.

ECB's Kazimir: If the inflation estimate for 2023 and 2024 changes, the ECB will have to intervene

There is a chance that Russia and the United States will achieve an agreement on security guarantees, talks have begun - RIA


Wednesday FX Options Expiries

EUR/USD: 1.1250 (EU844.5M), 1.1205 (EU736.3M), 1.1350 (EU608.8M)
USD/JPY: 113.00 ($638M), 113.45 ($620M), 114.50 ($587M)
GBP/USD: 1.3245 (GBP659.1M), 1.3290 (GBP514.7M), 1.3400 (GBP388.2M)
USD/CAD: 1.2040 ($345M), 1.2380 ($300M)
USD/CNY: 6.5220 ($370M), 6.4195 ($350M)
AUD/USD: 0.7110 (AUD348.8M), 0.7400 (AUD316.2M)
USD/BRL: 5.7000 ($300M), 5.6500 ($300M)