Global

· Global Business Growth At Weakest Rate In Over A Year: PMI. The pace of global business growth eased to its weakest rate in over a year at the end of 2014 as rates of expansion slowed in both the manufacturing and service industries, a survey showed on Tuesday. JPMorgan's Global All-Industry Output Index, produced with Markit, fell to a 14-month low of 52.3 in December from November's 53.1 but has now held above the 50 mark that divides growth from contraction for more than two years. A global PMI covering the service industry also fell to a 14-month low, coming in at 52.3 compared to November's 53.4. Global manufacturing activity expanded at its weakest pace in more than a year at the end of 2014, a similar survey showed on Friday. (Reuters)

Malaysia

· Malaysian Palm Oil Hits 2-Month High As Ringgit Slides To 5-1/2-Year Low. Malaysian palm oil futures rose to a two month high on Tuesday as the ringgit slumped to a 5-1/2-year low and floods raised the prospect of tighter supplies. The Malaysian ringgit fell to its lowest level since July 2009 at 3.5550 per dollar - making palm a cheaper vegetable oil option for foreign investors - and the currency is expected to continue to underperform. "A weaker ringgit will mean the Malaysian Derivatives Exchange will be supported," said one trader with a foreign commodities firm in Kuala Lumpur. The benchmark March palm oil contract rose to as much as RM2,310 in early trade, the highest level since Nov. 4, before settling at RM2,284 ($642) per tonne by Tuesday's close, a gain of 0.9%. Total traded volume stood at 46,406 lots of 25 tonnes, above the usual 35,000 lots. (Reuters)

Asia

· China December HSBC Services PMI At Three-Month High, More Stimulus Still Seen. China's services sector grew at its fastest pace in three months in December as new orders remained strong, a private survey showed, an encouraging sign of strength even as manufacturing activity slows and the property market softens. The robustness in the services sector contrasted sharply with surveys last week which showed Chinese factories were struggling at the end of 2014, suggesting a further loss in economic momentum. The HSBC/Markit Services Purchasing Managers' Index(PMI) picked up to 53.4 last month from November's 53.0, well above the 50-point level that separates growth from contraction in activity on a monthly basis. (Reuters)

· Indian Services Growth Eased In December, Prices Barely Rise. India's dominant service industry eased off the accelerator in December and firms barely raised prices, increasing pressure on the Reserve Bank of India to loosen monetary policy soon, a survey showed on Tuesday. Weak growth will also add to calls for Prime Minister Narendra Modi's government to speed up the pace of reforms. The HSBC Services Purchasing Managers' Index (PMI) INPMIS=ECI, compiled by Markit, eased to 51.1 in December from November's five-month high of 52.6, nudging it closer to the 50-point that divides expansion from contraction. (Reuters)

Americas

· U.S. Services Sector Activity Growth Slowest Since February: Markit. The U.S. services sector expanded in December at its slowest rate since February as growth in new business and employment declined, an industry report showed on Tuesday. Financial data firm Markit said the final reading of its Purchasing Managers Index for the service sector was 53.3 in December, down from its "flash" reading of 53.6 and November's reading of 56.2. (Reuters)

· Brazil Services Extend Slump In December As Cost Pressures Weigh: PMI. Activity in Brazil's services sector fell for the third straight month in December, hurt by a weaker currency and a widening corruption scandal at state-run oil company Petrobras. HSBC's Purchasing Managers Index for Brazilian Services BRPMIS=ECI edged up on a seasonally adjusted basis to 49.1 in December from 48.5 in November, but remained below 50 indicating further contraction. (Reuters)

Europe

· German 10-year bund yield hits all-time low. The 10-year German bund yield [s:DE:10YR] hit an all-time low Tuesday, as worries over the outcome of the snap Greek election and the expectation that the European Central Bank will soon begin buying government bonds drive investors into the perceived safety of sovereign debt. The 10-year bund yield has fallen 6.2 basis points to 0.455%. according to data from Tradeweb. Investors' concerns about the faltering eurozone economic recovery have driven the bund's yield lower for most of the past year, pushing it further into record-low territory. (MarketWatch)

· Eurozone Economy Slows Further. The closely watched Markit/CIPS composite purchasing managers' index (PMI) for December fell to 51.4 from an earlier estimate of 51.7. But that was better than the previous month's reading of 51.1, which had marked a 16-month low. The eurozone economy has seen 18 months of continuous, albeit weak growth. Markit said its latest PMI survey, which combines the results of individual surveys of the construction, services and manufacturing industries, suggested the eurozone economy grew by just 0.1% in the last three months of 2014. (BBC)

· UK Services Sector Sees Slowest Growth For 19 Months. The UK services sector lost momentum at the end of last year, growing at its slowest rate for 19 months, a closely watched survey suggests. The Purchasing Managers UK Services PMI slipped to 55.8 in December, down from 58.6 in November, marking its lowest level since May. Despite the slowdown, the sector remains comfortably above the 50-mark which separates growth from contraction. The pound fell sharply after the data. (BBC)

· French December Consumer Confidence Hits Two-And-A-Half-Year High. French consumer confidence rose in December to its highest level in two and a half years, underscoring slightly improving prospects for Europe's second biggest economy as a lower oil prices bolstered purchasing power. The official INSEE statistics agency said the confidence index rose to 90 in December, up two points from the previous month to its highest level since June 2012, and closer to its long-term average of 100. November's reading was revised upward by 1 point to 88. (Reuters)

Currencies

· Dollar Hits Highest Level Against Norwegian Krone Since 2002. The dollar rose Tuesday to its highest level against the Norwegian krone since July 2002 as weakening oil prices continued to weigh on the economies of major oil exporters. The Canadian dollar traded at 84.46 cents, its lowest level against the buck since May 2009. It traded above 85 cents to the dollar Monday. The dollar traded for 63.66 rubles, its highest level against the Russian currency since Dec. 17. It traded at 61.60 rubles Monday. The greenback traded at 7.76 krone Tuesday, compared with 7.63 krone Monday. The dollar was unable to entirely avoid the headwinds caused by falling oil. The greenback traded at 118.50 yen, its weakest level against the Japanese currency since mid-December. Japan relies on oil imports to meet its energy demand. The euro fell to $1.1859, hitting a nine-year low for the second time in two sessions. The shared currency traded at just above $1.19 Monday afternoon. (Marketwatch)

Commodities

· Oil Down Almost 10 Pct In 2 Days As Hunt For Bottom Continues. Global oil markets on Tuesday slumped for a fourth straight session as mounting worries about a supply glut pressured crude prices, which have fallen almost 10% this week to their lowest since spring 2009. Traders said the trend for crude seemed lower but that prices could bounce up whenever there is a break in market sentiment. One such moment occurred on Tuesday when weaker-than-expected U.S. economic data briefly pushed the dollar lower. This brought crude off session lows but only for an about an hour, as the downward path resumed. In Tuesday's session, Brent settled down $2.01 at $51.10 a barrel. It earlier fell to $50.52, its lowest since May 2009, and less than a dollar away from breaking below the $50 support. In the first two days of this week, Brent has dropped $5.32, or almost 10%. U.S. crude finished down $2.11, or 4.2%, at $47.93, after plumbing an April 2009 low of $47.55. (Reuters)

· Gold Climbs 1 Pct To 3-Week High As Investors Seek Safety. Gold jumped more than 1% to a three-week high on Tuesday, extending gains on safe-haven buying as stock markets slid on mounting concern over Greece's future in the euro zone and as oil prices tumbled. Spot gold was up 1.1% at $1,216.45 an ounce at 2:32 p.m. EST (1932 GMT), having earlier touched a peak of $1,222.40, its highest since Dec. 15. The metal rose 1.3% on Monday. Among other precious metals, silver was up 2.3% at $16.51 an ounce. Platinum was up 0.8% at $1,214.10 an ounce, while spot palladium was up 1.2% at $799.22 an ounce. (Reuters)