The global equity selloff continued, with yesterday’s less-dovish tone from the Fed than some had expected draining conviction, while the markets also grappled with monetary policy decisions out of Japan, the U.K., China and Sweden, with the latter raising rates for the first time in seven years. Exacerbating sentiment, measures to avert a partial government shutdown ahead of tomorrow’s deadline hit a snag due to the border-wall funding battle, while the U.S. stepped up efforts to crack down on alleged Chinese intellectual property espionage. Treasury yields rose and gold rallied, while the U.S. dollar and crude oil prices fell.

The Dow Jones Industrial Average (DJIA) fell 464 points (2.0%) to 22,860, the S&P 500 Index dropped 40 points (1.6%) to 2,467, and the NASDAQ Composite decreased 108 points (1.6%) to 6,528. In heavy volume, 1.4 billion shares were traded on the NYSE and 3.2 billion shares changed hands on the NASDAQ. WTI crude oil declined $2.29 to $45.88 per barrel and wholesale gasoline was off $0.07 at $1.32 per gallon. Elsewhere, the Bloomberg gold spot price jumped $17.36 at $1,260.45 per ounce, and the Dollar Index—a comparison of the U.S. dollar to six major world currencies—fell 0.7% to 96.32.

The Conference Board’s Index of Leading Economic Indicators (LEI) for November increased 0.2% month-over-month (m/m), above Bloomberg projections of a flat reading and compared to October’s downwardly-revised 0.3% decrease—the first negative reading since May 2016. The yield curve, ISM new orders, building permits, and consumer expectations were positive, while stock prices and jobless claims were negative.

The Philly Fed Manufacturing Index in December unexpectedly declined, but remained in expansion territory (a reading above zero). The index dipped to 9.4 from 12.9 in November, compared to estimates of rise to 15.0.

Weekly initial jobless claims increased by 8,000 to 214,000, versus expectations calling for a rise to 215,000, from the prior week’s unrevised 206,000 figure. The four-week moving average decreased by 2,750 to 222,000, while continuing claims increased by 27,000 to 1,688,000, north of estimates of 1,663,000.

Treasuries saw pressure, with the yield on the 2-year note rising 2 basis points (bps) to 2.67%, while the yields on the 10-year note and the 30-year bond gained 5 bps to 2.80% and 3.03%, respectively.

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