EM CEEMEA CREDIT: KENINT: Central bank decision

• The S&P Global Canada services PMI fell to 48.2 in December from 51.2 in Nov, implying its services economy contracted for the first time in three months.
• The press release shows a contrast between subdued demand and notably intensifying price pressures:
• "Canada’s services economy contracted for the first time in three months at the end of 2024. Market demand was reported to be subdued, with the downturn in the sector worsened by postal strikes. Firms nonetheless continued to fill long-held vacancies at their units, which meant that backlogs of work declined sharply. Cost pressures meanwhile intensified amid reports of higher wage bills. Output charges were raised in response to the greatest degree since May."

Some of the late London morning moves reverse as Donald Trump posts the following on Truth Social: "The story in the Washington Post, quoting so-called anonymous sources, which don't exist, incorrectly states that my tariff policy will be pared back. That is wrong. The Washington Post knows it's wrong. It's just another example of Fake News."

• The BBDXY recovers just over 50% of the losses seen following the Washington Post Story.
• Tsy yields now flat to 2bp higher on the day, curve steeper.
• Euro Stoxx 50 futures pare nearly all of their Washington Post-inspired rally before stabilising.

SPX: 5,991.8 (+0.8%); DJIA: 42,923 (+0.4%/+190pts); NDX: 21,556.7 (+1.1%).