CREDIT OPEN: Pipeline expected to build quickly
EU index futures point to a firmer start for European stocks in the opening session of 2025 which comes despite a negative Asian handover. US index futures also point higher after the cash S&P500 and Nasdaq indices clocked up 2024 gains worth a respective 23.3% & 28.65%.
Over in Asia, Japanese markets remain closed today while HK and mainland China indices are lower by well over 2% with attention falling on weaker than forecast Caixin Manufacturing PMI data which unexpectedly fell to 50.5 in Dec from a prior 51.5, missing the 51.7 BBG consensus.
Turning to the day ahead and Thursday's session delivers final Dec Manufacturing PMI data from France, Germany, Eurozone and UK while peripheral countries report for the first time. Also due this morning is Eurozone M3 for Nov.
In US hours, the main data release is weekly jobless claims data.
There are no speakers or major terms auctions scheduled.
For more on latest developments see the European Breakfast Briefing.
Thursday’s expected supply
The European bond market is expected to get back into the swing of things pretty quickly following the holiday period, with supply likely today from at least Lower Saxony which in Dec announced plans to issue 5yr and 10yr LSAs this week. Elsewhere, it is usual for automakers to kick off the year’s euro IG/split-rated corporate bond activity and we expect it to be no different this year. RCI Banque, the financing arm of French borrower Renault group, has opened up the market in each of the last seven years and so they look a safe bet to get us underway for 2025, whilst in the previous two years RCI has been joined by peer Toyota Motor Corporation.
** Lower Saxony EUR 5yr & 10yr LSA
In the US, the Street is looking for an average USD187.5bn in ex-SSA issuance to cross the tape this month, while even the least optimistic respondent to our monthly issuance poll is looking for USD175bn to price in January. See the IGM MORNING CALL for more
What to watch today - Manufacturing PMIs & US Jobless Claims
** Key Data: UK Nationwide House PX (07:00), SP HCOB Manufacturing PMI (08:15), IT HCOB Manufacturing PMI (08:45), FR HCOB Manufacturing PMI F (08:50), GE HCOB Germany Manufacturing PMI F (08:55), EC HCOB Eurozone Manufacturing PMI F (09:00), EC M3 Money Supply YoY (09:00), UK S&P Global Manufacturing PMI (09:30), US Initial Jobless & Continuing Claims (13:30)
** Key Events/Speakers: EIA Crude Oil Inventory Report (16:00)
** Auctions: No key term auctions scheduled for 2nd Jan
All times GMT
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