Europe

The key economic releases this week are retail sales on Wednesday and CPI on Thursday. The key market-moving event will be the December FOMC statement released on Wednesday at 2PM. In addition, there is one scheduled speaking engagement by Richmond Fed President Lacker on Friday.

• Crude Soars as Output Deal Weighs on Bonds; China Shares Tumble (BBG)
• 10-Year Treasury Yield Above 2.5% for First Time in Two Years (WSJ)
• The New Reality of TV: All Trump, All the Time (NYT)
• Fed May Struggle to Signal What Comes After December (WSJ)
• China warns Trump against ignoring its Taiwan interests (Reuters)
• China’s Stocks, Bonds, Yuan Slump in Unison on Liquidity Concern (BBG)
• Sovereign funds pulled cash from world markets for third year running (Reuters)
• Trump Adds To Criticism Of Companies (WSJ)

A euro crisis and contagion is almost certain in 2017, Irish economist and writer David McWilliams has warned:

"It is almost certain that there will be another euro crisis in 2017. The last time we had a euro crisis, the focus of attention was Greece; today the vortex is Italy.

The global bond rout returned with a bang, sending 10Y US Treasury yields as much as six basis points higher to 2.53%, the highest level in over two years. The selloff happened as oil prices surged by more than 5% following Saturday's agreement by NOPEC nations agreed to slash production, leading to rising inflation pressures. At last check, the 10Y was trading at 2.505%, up from 2.462% at Friday and on track for its highest close since September 2014, according to Tradeweb.

Submitted by Jim Quinn via The Burning Platform blog,