Eurozone inflation hits record high

In our Market Monday insights, Prosperity Investment Management examines the latest developments across the globe's biggest financial markets - providing you with all the latest information you need to know.

Inflation in the eurozone rocketed to a record high in December, as soaring food and energy costs pushed consumer prices to rise by 5%.

As a result of the record levels, German inflation also reached a near 30-year high leading Finance Minister Christian Lindner to announce that the government was considering financial aid for lower-income households to pay for rising heating bills.

German factory orders rebounded more than expected in November, rising 3.7% sequentially in seasonally adjusted terms, on increased international demand for capital and intermediate goods.

In the US, figures on jobs offered decidedly mixed views. The latest monthly payroll figures suggested that employers had added only 199,000 jobs throughout December, 50% down on consensus estimates. However, the household survey suggested that unemployment levels had fallen to 3.9% - close to levels last recorded just before the onset of the pandemic.

Japan’s manufacturing and services sectors were buoyed by signs of a gradual recovery from the pandemic in December. However, the improvement in operating conditions for manufacturers was slightly softer compared with the previous month. Rates of growth in production and incoming business were stronger than the average seen over 2021. However, rising raw materials prices continued to add to manufacturers’ cost burdens.