HERE'S OVERNIGHT DATA AND EVENTS (market expectations, last...

HERE'S OVERNIGHT DATA AND EVENTS (market expectations, last observation)

US > Empire State Manufacturing Survey General Business Conditions SA (Dec) unexpectedly declined to a five-month low of 2.55 (24.00, 23.51) in December, suggesting that manufacturing may provide less of a thrust for the economy in the coming months. Indices of orders, sales and employment all declined during the month, pointing to an uneven pace of expansion in manufacturing.

US > Foreign Net Transactions (Oct) rose less than estimates to $20.7B ($37.1B, $40.7B) in October as investors abroad sold agency and corporate debt. Stock purchases by global investors were the smallest in October, since April, as the S&P 500 dropped almost 2% and the dollar weakened against other major currencies. Investors were net purchasers of Treasuries for a fifth straight month.

US > Treasury International Capital Net Monthly Inflows Total (Oct): -$13.9B ($127.6B)

US > Industrial Production m/m SA (Nov) rose in November to 0.8% (0.5%, 0.0%) as industries boosted production in the fastest pace in three months. Manufacturing and mining rose, while utility demand was restrained by warmer weather. Capacity utilisation, which measures the proportion of plants in use, increased 71.3% (71.1%, 70.6%) in November.

US > NAHB Housing Market Index (Dec): 16 (18, 17)

US > PPI By Processing Stage Finished Goods Total m/m SA (Nov) rose more than estimates to 1.8% (0.8%, 0.3%) in November, led by a jump in fuel costs and a rebound in truck prices. The excess capacity and increasing unemployment rate is likely to hold suppliers from passing on the prices to customers.

US > PPI By Processing Stage Finished Goods Except Foods & Energy m/m SA (Nov): 0.5% (0.2%, -0.6%)

US > PPI By Processing Stage Finished Goods Total y/y NSA (Nov): 2.4% (1.8%, -1.9%)

US > PPI Core y/y NSA (Nov): 1.2% (0.9%, 0.7%)

EU > Labor Costs Nominal Values Eurozone y/y WDA (3Q): 3.2% (3.5%, 4.3%)

EU > ZEW Expectation of Economic Growth (Dec): 48.0 (50.0, 51.8)

UK > CPI EU Harmonized m/m NSA (Nov): 0.3% (0.2%, 0.2%)

UK > CPI EU Harmonized y/y NSA (Nov) increased to 1.9% (1.8%, 1.5%) more than analyst estimates in November, driven by fuel and transportation cost. Inflation is expected to reach about 3% in 2010. Fuel and lubricants rose 2.8%. Higher prices of second-hand cars and air transport also led the gain.

UK > RPI m/m NSA (Nov): 0.3% (0.2%, 0.3%)

UK > RPI Less Mortgage Interest PayMents y/y NSA (Nov): 2.7% (2.6%, 1.9%)

UK > DCLG House Prices UK y/y (Oct) fell -2.2% (-4.1%) in October. However, on a month on month basis the prices rose 0.5%.

GE > ZEW Expectation of Economic Growth (Dec) declined to 50.4 (50.0, 51.1) for the third consecutive month in December.

GE > ZEW Assessment of Current Situation (Dec): -60.6 (-60.1, -65.6)

Bank of England > policymaker Kate Barker said: There are reasons to think you wouldnt want asset prices to go up too far. For me, theres a bit of caution about how much further Id like to take the [bond purchase] policy. Not that asset prices are far out of line.

Good luck tomorrow traders!