The year started with no gentle easing back into the swing of things for markets which kicked the New Year off with big falls in both equities and bonds. This followed the release of the minutes of the last US Federal Reserve rate setting meeting which showed the bank was a lot more worried about inflation than it had been letting on.

Tech stock have seen their biggest decline in almost a year as investors favour value stocks on hopes that Omicron is milder than previous variants and will lead to less economic disruption.

The two year Treasury yield climbed to its highest level in almost two years on Friday, while notching a fourth straight week of gains as Fed Policy Markes continued to set the stage for tighter financial conditions.

UK short dated bond yields had the highest close since March 2019. The British short dated government bond yields had the highest close in almost three years tracking yield for US government debt higher as markets weighed the prospects of an early rate rise by the US Fed.

Chinese shares climb over the last month as official data showed economic growth topped 8% last year. Numbers from China’s National Bureau of Statistics shower the Chinese economy grew by 8.1% in 2021. China’s GDP rose 4% from a year ago topping Reuters poll than predicted a 3.6% increase.

Oil hits seven year high as Houthi attack on UAE rattles regional tensions. Yemen’s Houthi rebels claimed responsibility for the attack which took place Monday morning and caused fires that resulted in three petroleum tanker explosions near state oil firm ADNOC’s storage facilities.