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Banxico Minutes and Brazil PMIs Headline Thursday's Docket

LATAM
  • Services and composite PMIs from Brazil are expected before Banxico release the minutes from the December meeting. Later in the session, Uruguay CPI is scheduled.
  • US: Focus for the Thursday session in the US looks to ADP employment and weekly US jobless claims data, as well as the final US PMI print for December. There are no central bank speakers of note.
  • GLOBAL: Iran said blasts that killed almost 100 people in a central province were aimed at punishing its stance against Israel’s invasion of Gaza, building on signs the war against Hamas could tip into a broader regional conflict. (BBG)
  • CHINA: MNI (Beijing) - The yuan will experience swings in 2024 as it grapples with several domestic and international factors, such as the ability of China’s support policies to boost sentiment, potential Federal Reserve interest-rate cuts and the performance of the U.S. economy, a prominent economist told MNI in an interview. Guan Tao, global chief economist at BOC International, said a Fed pivot would create a benign environment for a stronger yuan, however, stable upward momentum will require Chinese consumption and investment expectations to improve.
  • US: Donald Trump asked the US Supreme Court to overturn a ruling that would bar him from the presidential ballot in Colorado, setting up a historic showdown over whether his role in the Jan. 6, 2021 assault on the Capitol disqualifies him from office.
  • GERMANY: We have now received state data that equates to 86.7% weighting of the national December flash German CPI print (due at 1300BST/1400CET). MNI estimates that national CPI rose by 0.0-0.1% m/m and 3.6-3.7% y/y. The data implies readings broadly in line with expectations coming into the session of +3.7% Y/Y and +0.2% M/M. Today's state data points to core CPI (ex-energy and food) of roughly 3.5% Y/Y, vs 3.8% in November.

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