Good morning. The People’s Bank of China stepped up its defence of the Renminbi yesterday, after the Chinese currency slid to its lowest level since 2023. The PBoC said it would sell Rmb60bn ($8.2bn) of bills in Hong Kong in January, its largest sale since auctions began there in 2018. Chinese authorities have pledged to keep the currency stable. But with China’s struggles, and the US’s strong economy, that may take serious firepower. What is China prepared to do? Email us: robert.armstrong@ft.com and aiden.reiter@ft.com.

Maximum uncertainty

Something significant has shifted in markets in the past month or so. We can all feel it. What exactly is it? 

The change is perceptible in all corners of the market. But let’s start with equities. In the months running up to the election, US stocks were ticking upwards by fits and starts. Immediately after the election, they got a big boost, with small-cap — that is, riskier — stocks getting the best of it: