x 50 volatility rose above its recent norm.
Why should I care?
For markets: Rates are sorting winners from losers.
The split was sharp: tech and retail climbed even as the wider index fell, a sign investors are still paying up for growth and pricing power. But rising yields tconclude to pressure balance-sheet-heavy sectors, which assists explain the drop in banks and European REITs. Energy also dragged as Brent crude slipped toward $69 a barrel, weighing on oil and gas stocks and highlighting how commodities can amplify rate-driven shifts.
The hugeger picture: Consumers see steady but not strong.
Retail sales in the euro area fell month over month in December, revealing higher borrowing costs still bite. But sales were up from a year earlier, pointing to resilience rather than a collapse in demand. Whether that holds could hinge on what the BoE and ECB signal next – staying “higher for longer” to finish the inflation fight, or hinting that cuts could come sooner.
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