Central Banks Turn Hawkish as Yields Rise and Markets Volatile

• Global central banks (Fed, BoE, ECB, BoJ, RBA) are adopting a cautious/hawkish tone, with most holding rates but all flagging rising inflation risks.
• Rising bond yields are a significant concern, with UK gilts at 2008 highs and US 10-year yields approaching 4.40.
• Geopolitical headlines, particularly the Middle East conflict, are a primary catalyst for market uncertainty and energy market volatility.
• Key events next week include Fed speakers, consumer sentiment and Flash PMI data, the 'Davos of Energy' event (CERAWeek), and Carnival earnings.

The discussion highlights a hawkish shift among global central banks due to persistent inflation risks, exacerbated by the Middle East conflict. This has led to rising bond yields and increased market volatility, with central banks delaying anticipated rate cuts and even considering further hikes.