Themes

· General mood is “risk off”

· German IFO Business Climate slightly stronger than expected at 93.0

· Largely quiet day, Euro and commodity currencies outperform

What’s Moving

With little in the way of key data in Europe or America overnight the market was fairly lackluster early. German IFO printed slightly firmer than expected and combined with the recent Dollar weakness, which helped to support the Euro which was the best performer overnight.

Stocks then opened firmer out of the chute, supported by chatter that Biden might remove the Trump tariffs against China. This saw U.S. equities up around 1.5% on the day.

The rest of the day was a drift, with some buying of commodity currencies and continued Euro strength.

Thoughts

What can you expect in Asia after a directionless overnight session? Not much. Expect a quiet consolidatory day today, with position adjustment to be the dominant flow.

Local Asian data today includes:

· Japanese flash Manufacturing PMI (E: 53.8), and

· Japanese BoJ Core CPI (+1.1%)