A relatively calm session overnight with the EUR managing to find some support off 16-month lows. German data was mixed with trade numbers looking strong in November (surplus rising to €16.2b from revised €11.5b) but not reflected in industrial production data which fell 0.6% on month after a 0.8% increase the previous month. The Merkel/Sarkozy summit came and went with little new for markets to latch on to. The CHF took SNB’s Hildebrand’s resignation in its stride with only a small kneejerk reaction lower in EURCHF but, with limited impact on official policy as Jordan takes over the reins in the interim, the 1.20 floor remains intact and unchallenged.
The US data calendar was bare overnight but a late release of US consumer credit data suggested that banks are relaxing credit criteria and returning to some semblance of normality as total credit jumped to $20.37 bln from $6.02 bln, the largest jump in over a decade, with non-revolving credit (non-credit card) rising a whopping $14.8 bln. Wall St posted modest gains on the day with the DJIA up 0.27%, S&P +0.23% and the Nasdaq +0.09%. Alcoa, the first company to report Q4 earnings in the DJIA, beat forecasts on revenue yet still recorded a loss on weaker aluminium prices after the bell.
The Asian data calendar is more busy today with UK’s BRC Sales data and RICS house price balance kicking off the session. Australian building approvals for November follow shortly after with China trade data for December expected sometime during the day. The European data slate is Scandinavia-focused with Sweden’s budget balance and industrial production along with Norway’s CPI and PPI. The North American session features Canada’s housing starts and US NFIB small business optimism, IBD/TIPP economic optimism, JOLTs job openings and wholesale inventories. Fed speakers are out in force with Williams, Pianalto and George all scheduled to speak.
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