CZECHIA: Governor Says CNB Will Be Very Careful About More Cuts

• The upside continuation in US Equities, these are small slow moves, help the European Tech sector {SX8P Index} back towards it earlier intraday high.
• The initial rally in Tech stocks started Yesterday after Microsoft said that it planned to spend $80bn on AI centers this Year.
• SX8P is breaking above 850.00, the highest traded level since late July, and next resistance is seen further out, up to 864.89.

• We wrote earlier how Eurozone service CPI inflation momentum continued to cool in December despite the monthly pace increasing to 0.34% M/M, but also how there have been concerns in recent months about whether the seasonal adjustment process is biasing this lower.
• On that subject, Goldman Sachs write that they estimate sequential core inflation at a seasonally adjusted 0.33% M/M in December, “notably stronger than the ECB's estimate of 0.21%mom and higher than the November reading of 0.02%mom, driven by an acceleration in sequential services.”
• “We update our Euro area inflation path, and still expect core inflation to reach target sustainably by the end of 2025. As for headline inflation, we now see it slightly above target for the entirety of 2025.”

FRBNY EFFR for prior session:

• Daily Effective Fed Funds Rate: 4.33% (+0.00), volume: $98B
• Daily Overnight Bank Funding Rate: 4.33% (+0.00), volume: $280B