A shortened holiday trading week, was not enough to keep the bears at heel, with equities giving up further ground and bond yields moving ominously higher. German 10 Year bonds have hit 2008 levels, with yields rising above 2.5%, while the UK yields pushed back up to 3.69%. It was not just European Bond Yields moving up, as US 10 Year yields crept up to 3.89%, warning markets about inflation. US equities also tumbled, with losses in the 2022 year now the worst since 2008, while currencies remained relatively stable. The EUR held above 1.0600, while the GBP clutches at 1.2000. US Pending Homes Sales contracted sharply, falling 4% for November and nearly 38% annually, while the Case Shiller Home Price Index also turned negative.
Japanese Industrial Production contracted 1.3%, while China and Hong Kong continue to emerge from extremely harsh covid restrictions. The indifference of currencies was also reflected in the commodity dependent, with the AUD holding above 0.6700, while the NZD stabilises above 0.6250. Global economic data and markets are very thin, in this holiday period and hopes are for a close out to a bleak year, with as little damage as possible.