Daily Market Insight

• UK government seeks to mitigate workforce disruption from Omicron • Japan's factory activity growth softens in December -PMI • Mexico inflation seen at highest level in two decades in December: Reuters poll • Dollar Down, but Hits One-Month High Against Yen Over Rate Hike Bets

• U.S. President Biden signs $770 billion defense bill • China to roll out fiscal policies proactively to stabilise growth next year • Japan's Nov factory output soars on jump in car production • Dollar Up, Yen at One-Month Low as Omicron Worries Lessen

• U.S. Rep Jayapal asks Biden to continue focus on 'Build Back Better', urges executive action • Japan's Nov retail sales rise but Omicron risks loom • China's industrial profit growth tumbles as raw material prices fall • Risk sentiment dwindles during early Monday as global traders cheer the holiday mood

• U.S. economy shows strength heading into COVID-19 winter wave • Japan's record $940 billion budget may help COVID-hit economy, fiscal discipline in doubt • France, Italy raise joint debt issuance idea for EU fiscal rule reform • Dollar firm but risk-sensitive currencies also rise

• Senate panel likely to hold hearings for Fed's Powell, Brainard next month • Bank of Canada keeps interest rates unchanged, warns of Omicron uncertainty • BoE weighs up inflation pressure and Omicron for rates decision • Dollar stays soft, with Omicron still top of mind

• U.S. Congress boosts funding for Boeing jet fighters, ships in defense bill • China central bank cuts rates on relending facility, benchmark cut chances seen as low • No need now for ECB to boost legacy bond purchase scheme: Muller • Aussie buoyant, dollar listless as Omicron optimism lifts risk assets

• U.S. House could vote to hike debt limit this week, senior Democrat says • China frees up $188 billion for banks in second reserve ratio cut this year • BoE's Broadbent sees inflation above 5%, price pressure from jobs market • Dollar up against safe havens as risk sentiment improves on Omicron news

• Fed to kick off faster tapering plan from January - Goldman Sachs • ECB must keep options open beyond Dec amid uncertainty: accounts • BOJ's Nakagawa says 2% price goal isn't sole purpose of BOJ policy – Bloomberg • Dollar Down, but Caps Losses as Newly Discovered COVID Strain Dampens Sentiment

• Fed's Evans says taper to take until mid-2022 to complete • Here’s How Markets Might React If Biden Picks Lael Brainard as Fed Chair • ECB must be ready to act if inflation proves more durable: Schnabel • Dollar takes breather from rally, hovers just off 16-month top

The White House on Wednesday stepped up efforts to get Congress to raise the federal debt ceiling. National Economic Council Deputy Director Bharat Ramamurti and Treasury counselor Ben Harris conveyed the message to Democrats that it’s the shared responsibility of Republicans to avoid a U.S. payment default.