Daily Market Insight

• 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.

U.S. home prices once again jumped the most in more than 30 years. The S&P CoreLogic Case-Shiller index of property values nationwide surged 18.6% in June from a year earlier.

Energy companies on Monday were beginning a days-long evaluation of facilities hit by Hurricane Ida as widespread power outages and flooding onshore presented major hurdles to restarting oil and gas processing plants.

The dollar was nursing losses on Monday and kept near multi-week lows after Federal Reserve Chair Jerome Powell laid out a slower-than-expected path to rate hikes, while a storm lashing oilfields in the Gulf of Mexico lifted oil-exposed currencies.