*Macro and Market update this morning* *India-GST mop-up abou | stock market

*Macro and Market update this morning*

*India-GST mop-up about Rs 1.5 trillion in Dec, third highest ever*
Gross goods and services tax (GST) collection for December rang up over Rs 1.49 trillion, the data released by the finance ministry showed. This is a surge of 15 per cent year-on-year, mainly driven by increase in retail prices of consumption items, high inflation, and action taken to ensure compliance. This was the third-highest monthly collection since the tax was introduced in July 2017.

*Unemployment rate rises to 16-month high of 8.30% in Dec 2022: CMIE*
India's unemployment rate rose to 8.30% in December, the highest in 16 months, from 8.00% in the previous month, data from the Centre for Monitoring Indian Economy (CMIE) showed on Sunday. The urban unemployment rate rose to 10.09% in December from 8.96% in the previous month, while the rural unemployment rate slipped to 7.44% from 7.55%, the data showed.

*India’s fiscal deficit for Apr-Nov at 58.9% of BE*
India's fiscal deficit widened to INR 9.78 trillion in April-November 2022 from INR 6.96 trillion a year earlier. That was equivalent to 58.9 percent of the government’s estimate for this financial year, compared with 46.2 percent of budget aim in the same period last year.

*Chinese manufacturing contracts sharply as COVID infections soar*
NBS Manufacturing PMI was down to 47.0 in December 2022 from 48.0 in the previous month, pointing to the third straight month of drop, amid the rapid spread of COVID infections that hurt production following Beijing's abrupt relaxation of pandemic measures. The latest print also marked the steepest pace of contraction in factory activity since February 2020.

*Fed reverse repo facility hits record $2.554 trillion*
The New York Fed said that its reverse repo facility took in $2.554 trillion in cash from money market funds and other eligible financial firms, passing the prev record on Sept. 30, when inflows totaled $2.426 trillion. The Fed’s reverse repo facility has been very active for some time. After seeing almost no uptake for an extended period, cash began to gravitate toward the central bank in the spring of 2021 and then grew consistently.

*ECB must stop quick wage growth from fuelling inflation: Lagarde*
Euro zone wages are growing quicker than earlier thought and the European Central Bank must prevent this from adding to already high inflation, acc to ECB President. Lagarde provided no new policy hint in the interview but said the bank must "take the necessary measures" to lower inflation to 2% from its current rate of near 10%.

*Wall St ends 2022 with biggest annual drop since 2008*
The benchmark S&P 500 has shed 19.4% this year, marking a roughly $8 trillion decline in market cap. The tech-heavy Nasdaq is down 33.1%, while the Dow Jones Industrial Average has fallen 8.9%. The annual percentage declines for all three indexes were the biggest since the 2008 financial crisis, largely driven by a rout in growth shares as concerns over Fed's rapid interest rate hikes boost U.S. Treasury yields.

*South Korea export growth declines for 3rd straight month*
Exports from South Korea dropped 9.5 percent from a year earlier to USD 54.99 billion in December 2022, after a 14% plunge in the previous month. It was the third straight month of decline in exports, as inflation pressures persist globally and the impact of economic slowdown in China, South Korea's biggest trading partner. By the destination, shipments rose to the US (14.5%), the EU (7.1%), while fell to China (4.4%).

*Historic new year for Croatia as it joins euro, Schengen area*
Croatia rang in two historic changes with the new year, as the European Union's youngest member joined both the EU's border-free Schengen zone and the euro common currency, fulfilling longstanding ambitions of close integration with Europe. It becomes the 27th country to join the Schengen area, and the 20th to adopt the euro currency.

*Asian markets*
Asian markets opened on a positive inspite of weakness in US markets amidst optimism on China’s reopening


Brent 86.01, DXY 103.