Commerzbank European Sunrise: Overnight News

== Markets:

USTs were weaker after 3y auction, futures opened higher in Asia. US equities closed near the highs, e-minis advanced further in Asia. DXY gave up yesterday's intraday gains with EUR bouncing close to $1.13. Brent edged lower while gold was up.

== United States:

Fed: Senate Banking Chair said confirmation hearing for Powell and Brainard will be held in January.

Senate leaders agree to raise debt ceiling by $2 trillion, enough to last beyond midterm elections and until Dec-2022. House passes bill to speed up raising debt limit by only requiring simple majority.

Geopolitics: US urges Germany to halt Nord Stream 2 and signals other "strong measures" if Russia invades Ukraine. Australia joins US in diplomatic boycott of Winter Olympics.

US/Russia: Biden didn't accede to Putin's "red line" demands, Putin made no promise to withdraw troops from Ukraine border in 2h video call.

Corona: Fauci says early data indicates Omicron is "more transmissible but less severe". BioNTech/Pfizer vaccine could be less effective against Omicron FT.

== Europe:

ECB: Lagarde reiterated view that today's inflation is "mainly due to temporary phenomena". Omicron is a risk, but "we are better equipped to respond" (TV interview conducted on 28Nov).

Repos: AFT announced temporary creation of 400 million euros of OATs today to test repo facility mechanism operationally.

Denmark announced first Green bond with 10y maturity in twin bond format for January.

BdF survey finds firms expect 0.75% Q4 GDP growth despite Omicron uncertainty. Industrial sentiment improves to 104 in Nov from 102.

== Asia:

Japan: Q3 GDP was revised down more than expected to -3.6% qoq (prev. -3.0%).