Daily Market Insight

• 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

• 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