from the International Monetary Fund’s managing director that a third of the world will fall into recession in 2023.
Traders were reluctant to trust early-year starts in stock and bond moves with many markets closed for a holiday and ahead of a host of economic numbers due this week. S&P Global’s final manufacturing Purchasing Managers’ Index bounced to 47.8 in December from November’s 47.1, matching a preliminary reading but below the 50 mark separating growth from contraction.
“There is an attempt by the dollar index to pull higher today but we do see that it is losing a good part of the strength it gained last year,” said Ulrich Leuchtmann, head of forex research at Commerzbank. Germany’s 10-year bond yield fell 13 bps to 2.43 per cent, after hitting its highest since 2011 at 2.57 per cent on Friday.