Daily Market Insight

• Rate traders see risk of more than four U.S. Fed hikes this year after hawkish Powell • Fed says bond maturity runoff will be main tool for shrinking balance sheet • China's Dec industrial profits grow at slowest pace since April 2020 • Dollar climbs as Fed flags hikes

• Trump battled the Powell Fed's rate hikes. Biden's betting on them • IMF cuts growth forecasts for U.S., China and world as Omicron spreads • BOJ debated chance of inflation pick-up towards 2% as price hikes broaden • Euro falls to one-month low as Ukraine tensions simmer

• China cenbank to roll out more policy moves to stabilise growth • Euro zone inflation to burn hotter, but ECB rates to stay on ice: Reuters poll • Even as Omicron slams Canada, bets on January rate hike rise • Dollar posts best daily gain in two weeks, boosted by U.S. Treasury yields

• Bank Indonesia to hold rates until second half of 2022 despite hawkish Fed • China tops forecasts with 8.1% growth in 2021 but headwinds loom • Bank of Japan to flag rising price pressure, maintain ultra-easy policy • Dollar fails to catch a lift from higher yields, Bank of Japan in focus

• Biden seeks to reshape Fed with historically diverse slate of nominees • China's Q4 and 2021 GDP grow faster than expected • China cuts rates on policy loans, analysts point to more easing ahead • Dollar finds a footing as traders brace for hawkish Fed

• 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