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

HERE's OVERNIGHT DATA AND EVENTS(market expectations, last observation)
• US ISM Non-Manufacturing Composite (Nov): 48.7 (52.0, 50.6). Service industries in the US unexpectedly contracted (a reading below 50) to their lowest level in four months as companies lost confidence in the economic recovery.

• US Initial Jobless Claims w/w (w/e 28 Nov) unexpectedly dropped by 5K to 457K (480K, 462K), its lowest level in over a year, suggesting that the labour market is beginning to stabilise. The 4-week moving average declined to 481.3K (496.5K). US Continuing Claims w/w (w/e 21 Nov) increased to 5,465K (5,400K, 5,437K) after improving the prior 10 weeks.

• US Nonfarm Productivity SAAR q/q (Q3 F) increased by 8.1% (8.5%, 9.5%), the fastest rate in six years despite being revised down from the 9.5% reported last month.

• US Unit Labour Costs SAAR q/q (Q3 F) were revised up to -2.5% (-4.2%, -5.2%), indicating that labour costs are not as weak as expected; but they are still subdued.

• US EIA Natural Gas Stocks w/w (w/e 27 Nov) increased 2bcf (2bcf).

• US Monster Employment Index (Nov) dipped to 119 (120). Weaker demand for healthcare-related positions and uneasiness among employers regarding the economic recovery were the main drivers.

• EU PMI Services (Nov F) grew (a reading above 50) for the third straight month to 53.0 (53.2, 52.6), a 23-month high.

• EU PMI Composite (Nov F), which includes services and manufacturing activity, expanded (a reading above 50) for the fourth consecutive month to 53.7 (53.7, 53.0), the highest level since November 2007.

• EU Retail Sales m/m (Oct) was flat (0.2%, -0.5%). EU Retail Sales y/y (Oct) decreased 1.9% (-2.4%, -2.8%).

• EU GDP SA q/q (Q3 P) grew 0.4% (0.4%, -0.2%) after five successive quarterly declines, as the European economy comes out of the worst recession in over six decades. The rise was driven by stronger exports, which increased 2.9% (-1.3%) for the first time in the past 18 months, and a 0.5% increase in government spending. EU GDP SA y/y (Q3 P) decreased 4.1% (-4.1%, -4.1%) in line with expectations.

• GE PMI Services (Nov F) reported the fourth straight monthly increase to 51.4 (51.5, 50.7).

• UK PMI Services (Nov) expanded (a reading above 50) at a slower rate to 56.6 (57.0, 56.9). Services in the UK grew for the seventh consecutive month after slipping from a two-year high, suggesting that the economy is recovering.

• UK Official Reserves (Nov): The UK government`s net reserves increased by $1,947M ($555M).

• US Federal Reserve Bank Chairman, Ben Bernanke said at a Senate confirmation hearing: “We must be prepared to withdraw the extraordinary policy support in a smooth and timely way as markets and the economy recover… My colleagues on the Federal Open Market Committee and I are committed to implementing our exit strategy in a manner that both supports job creation and fosters continued price stability.”

• ECB President Jean-Claude Trichet commenting on emergency loans, after keeping interest rates unchanged stated: “The improved conditions in financial markets have indicated that not all our liquidity measures are needed to the same extent as in the past… Liquidity will remain extremely abundant for a large number of months to come.”