US stocks closed mostly lower on Monday with stocks giving up gains that followed Powell’s confirmation by President Biden to continue as Fed Chair. The NASDAQ led losses, down 1.26% while the S&P shed 0.32%; the DOW managed to hold on to a meagre 0.05% gain in what was a thin trading session. Yield on 10Y USTs closed 8bps higher at 1.6236%.

The Bundesbank expects Germany’s November inflation to come just under 6% following October’s 4.6% reading – a 3-decade high. While the central bank conceded that inflation should retreat as VAT base effects subside, it predicted that it “could remain well above 3% for a longer period of time.” Yield on 10Y DBRs closed higher at -0.301% while the euro was weaker at $1.1237.

Asian stocks closed mixed on Tuesday following Wall Street’s pullback on Monday. The ASX led gains, up 0.78%, as PMI figures for November improved from October levels even as QoQ retail sales pulled back. The CSI managed to eke out a 0.02% gain while the HANG SENG was down 1.05% late in the session.

The lira opened Tuesday to more selling crossing the 12 mark to the dollar following President Erdogan’s defence of the latest bout of easing by the CBRT; the central bank has slashed 400bps off the benchmark rate since September even as inflation hovers about 20%. Monday had seen the currency trade steady, even strengthening to sub-11 at one point before Erdogan’s late comments. The Borsa Istanbul has been rallying however as investors take to stocks to hedge against inflation; the benchmark 100 index is up some 15% in November and continued its ascent in early Tuesday trading.