Morning bid: Rate cut talk, already!

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Morning bid: Rate cut talk, already!
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A look at the day ahead in U.S. and global markets from Dhara Ranasinghe

Markets, renowned for running ahead of time, are not buying that argument. They price in roughly 40 basis points worth of rate cuts in the second half of the year and the key is whether inflation will slow enough for the Fed to ease.

The December ADP National Employment report is released later on and economists polled by Reuters expect it to show private employment increased by 150,000 jobs after a 127,000 increase in November. The first is China's battle with COVID and what that means for the reopening of the economy. China on Thursday defended its handling of its raging COVID-19 outbreak after U.S. President Joe Bidenand the World Health Organization said Beijing was under-reporting deaths from the virus.

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