Risk aversion re‐enters markets as oil prices continue to fall, the U.S. 10year‐yield takes out its November low, trading at 1.85%, equities are weak and the USD strong. The World Bank has cut its global growth estimate to 3% in 2015, a downward revision of 0.4%, but raised its expectation for U.S. growth to 3.2% in 2015. However the core focus for markets continues to the decline in oil prices and the destabilizing ripple effect it is having. Today the focus will be on the Fed’s Beige Book, which will provide important anecdotal evidence for the Fed. With retail sales the data highlight followed by import prices, business inventories and the KC Fed’s LMCI.
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