\u200b\u200b\u200bMacro update
\n\u200bMarkets tread cautiously:<\/p>\n
Asian equities edged lower and the\u00a0United States (US) dollar<\/a> firmed as investors adopted a wait-and-see approach ahead of the US jobs report and a potential Supreme Court ruling on Trump-era tariffs, due around 3pm, which could spark volatility.<\/p>\n \u200bTariff ruling a key wildcard:<\/p>\n Markets are braced for a Supreme Court decision on the legality of global tariffs, with traders warning that overturning them could push Treasury yields higher, trigger up to $150bn in refunds and unsettle risk sentiment.<\/p>\n \u200bJobs report in focus:<\/p>\n December non-farm payrolls (NFPs)<\/a> are forecast to increase by around 60,000 after November\u2019s 64,000 gain, reinforcing the \u201cno hire, no fire\u201d narrative and keeping expectations for the Fed firmly on hold this month.<\/p>\n \u200bRates and dollar steady:<\/p>\n Despite Federal Reserve (Fed)<\/a> officials signalling only one cut, markets continue to price at least two rate reductions this year, with the dollar index near a one-month high and 10-year Treasury yields hovering around 4.18%.<\/p>\n \u200bEquities mixed across regions:<\/p>\n Japan\u2019s\u00a0Nikkei 225<\/a> jumped 1.5% on strong Fast Retailing results, European futures edged higher, while US markets closed mixed as weakness in tech was offset by defence stocks<\/a> hitting record highs on expectations of higher military spending.<\/p>\n \u200bMining M&A in the spotlight:<\/p>\n Rio Tinto<\/a>\u00a0and\u00a0Glencore<\/a> confirmed talks on a potential all-share merger that could create the world\u2019s largest mining group with a combined market value of around $207bn, adding a corporate catalyst to an otherwise cautious market backdrop.<\/p>\n \u200bDow Jones aims for record high<\/p>\n