NORGES BANK: Marginally Hawkish Tweak In Committee's Assessment Of Inflation

The Shanghai Futures Exchange adjusted risk control parameters for silver futures on Monday amid a sharp rise in silver prices, after increasing the margin ratio and price limit range earlier this month, Shanghai Securities News reported. The exchange said non-futures company members, overseas special non-broker participants and clients could open a maximum of 10,000 lots in the AG2602 silver futures contract, along with a rise in transaction fees. Increasing needs for hedging against currency devaluation, and the supply-demand gap for the fifth year continued to push sliver prices to break historical highs, the newspaper said, citing analysts.

USDJPY spills to new session lows, making a clean break of the Y156.00 handle in the process - but there's very little sign of intervention-type price action here.

• Markets understandably on edge for any signs of potential Japanese intervention after Katayama's comments yesterday - but there's no evidence of that just yet. During previous phases of intervention, the price action is associated with a significant, and sustained, spike in futures volumes. We're not seeing that on the latest leg lower for USDJPY.
• Price action here is USD, not JPY, led - evident in the rally for GBPUSD further above 1.35 and to new daily highs in EURUSD.

Spain PPI fell sharply in November, driven almost entirely by weakness in volatile energy prices, and helped lower by base effects from a strong rise in November 2024. Ex-energy, PPI showed modest growth and continuation of a much flatter trend since early 2024.

• PPI fell 2.5% Y/Y (vs a 0.8% rise in Oct, revised up 0.1ppt). Energy sectors were the overwhelming negative drivers.
• Energy PPI dropped sharply to -9.1% Y/Y (vs 2.0% Oct). INE notes this "resulted from lower prices for the production, transmission, and distribution of electricity and, to a lesser extent, for gas production and distribution of gaseous fuels, compared to the increase in November 2024."
• "It is worth noting, although in the opposite direction, the rise in prices for oil refining, which was greater than in [November 2024]." - this grew 4.5% Y/Y.
• Stripping out energy, the changes are much more modest, with the index instead having grown 0.5% Y/Y (vs -0.1% Oct) for 3pps above the overall PPI Y/Y rate.
• Month-on-month, PPI slipped -0.4% M/M (vs 0.5% Oct). The biggest upward drivers for monthly changes were oil refining (4.5% M/M), metals (3.0%), and animal/vegetable oils (1.6%).
• The largest downward monthly drivers were production, transport and distribution of electricity (-4.9% M/M), gas production (-3.6%), and processing/preserving meat products (-0.8%).