Market Briefing: Festive Cheer Drains Out of Markets As Central Banks Remain Hawkish Into Year End
After a bruising session yesterday, risk-sensitive currencies are setting up for another day of losses. The greenback is firmer, yields are higher, and commodity prices are weaker after the Federal Reserve adopted a more hawkish-than-expected stance on Wednesday’s meeting, Europe’s central banks followed suit with their own 50-basis point hikes, and data pointed to a slowdown in American consumer spending. November retail sales tumbled 0.6 percent from the prior month, falling more than expected as price growth slowed and spending patterns shifted. So-called “control group” sales, which exclude building materials, vehicle parts and gas station sales, dropped 0.2 percent, while...