Emerging markets, which took a pasting last year, fell another 3%, with China 8% lower ahead of this week’s New Year break.
Given that low interest rates and central bank bond buying is estimated to have pushed those valuation multiples higher than they should have been, you could argue that most of the unwind has now taken place.
That’s a bit less than we hoped a month ago but it’s probably enough to justify share prices at today’s level.
As important is whether the Fed can walk the tightrope – raising rates just enough to keep inflation in check but no more than absolutely necessary.
And finally, we are closer to discovering the fate of the Prime Minister following the delivery of Sue Gray’s report into Partygate.
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