Share markets had an end of year wobble on Thursday, while bonds make a remarkable round trip for the year on the consensus view that large parts of the world will be chopping interest rates in 2024.
Wall Street had suffered its biggest drop since September on Wednesday. There was no obvious catalyst but with holidays fast approaching and a final dump of the U.S. data due later neither Asia no Europe offered much resistance.
Europe’s STOXX 600 index plunged nearly 0.4% in a broad market selloff where the region’s car sector SXAP skipped 1% and both tech SX8p and travel SXTP slipped 0.5%.
Meanwhile, Commerzbank CBKG.DE brought some timely cheer as the shares of its jumped nearly 3% after the European Central Bank approved its 600 million euros stock buyback plan.
Speaking of bonds, Italy’s 10-year bond yields – which reflects to the borrowing cost of Rome, fell to its lowest since August 2022. 10-year Treasuries US10YT=RR plunged to reach 3.86%, which was exactly where they started the year.