FTSE 100

The post-Brexit euphoria appears to have abruptly vanished in December as UK core retail sales plunged 2.0% month-over-month, the biggest drop since May 2011. Ironically, this crack in the 'Brexit Boom' occurred an hour before U.K. Chancellor of the Exchequer Philip Hammond told a Davos gathering on Friday that an inflation pickup will put a damper on consumers this year. Cable tumbled on the print (not helped by London home pre-sales plunging).

Global shares were mixed, equity futures, the dollar and crude rose as investors focused their attention on today's inauguration of Donald Trump as U.S. president. While the early tone is well bid, some traders anticipate a volatile session, with speculation that a bout of "sell the inauguration" could cap the aging Trump rally, which started with his inauguration.

After yesterday's speech by Janet Yellen which signaled a path of steady interest rate increases and was perceived as hawkish, the dollar rebounded, Asian shares slipped and government bond yields jumped to multi-week highs on Thursday.

• Business euphoria over Trump gives way to caution, confusion (Reuters)
• Biden Lashes Out at Trump Over Comments on NATO (WSJ)
• Number of House Democrats Skipping Inauguration Grows (WSJ)
• Rising U.S. shale-oil output threatens OPEC’s production pact (MW)
• China urges U.S. to bar Taiwan delegation from Trump inauguration (Reuters)
• IEA Sees Significant Gains in U.S. Shale Oil as Prices Rise (BBG)
• Tom Price to Face Questions on Stock Trades, Obamacare (WSJ)

European shares decline led by a plunge in Pearson shares, S&P futures were modestly in the green as Asian and EM stocks gained. The dollar rebounded against most major currencies after retreating 1.3% on Tuesday to the lowest in a month following Trump's "strong dollar" comments and halted a seven-day drop against the yen.