OVERNIGHT DATA AND EVENTS (market expectations, last...

OVERNIGHT DATA AND EVENTS (market expectations, last observation)
• US NFIB Small Business Optimism Index (Nov) declined to 88.3 (89.1), the lowest level in four months, in November, hurt by falling profits and slower sales. The employment, inventories and sales indices were also negative.

• US IBD/TIPP Index of Economic Optimism (Dec): 46.8 (49.0, 47.9)

• CA BoC Overnight Lending Rate (Dec 8) remained unchanged at 0.25% (0.25%, 0.25%) indicating that a strong Canadian dollar would hurt economic growth.

• UK NIESR GDP Estimate q/q (Nov): 0.2% (-0.3%)

• UK Manufacturing Production m/m SA (Oct) unexpectedly stalled in October 0.0% (0.4%, 1.6%) adding to signs that the economy is struggling in its recovery. Factory output was unchanged after gaining 1.5% in September.

• UK Manufacturing Production y/y SA (Oct): -7.8% (-7.2%, -9.8%)

• UK Industrial Production m/m SA (Oct): 0.0% (0.5%, 1.3%)

• UK Industrial Production y/y SA (Oct): -8.4% (-7.6%, -10.8%)

• UK HBOS House Prices All UK m/m SA (Nov) rose twice as much as estimates to 1.4% (0.6%, 1.1%) in November driven by higher demand for property. Values rose 1.8% from a year earlier, the first annual increase since February 2008.

• UK HBOS House Prices 3m y/y (Nov): -1.6% (-1.5%, -4.7%)

• GE Industrial Production m/m SA (Oct) unexpectedly declined to -1.8% (1.0%, 3.1%) in October, the first time in three months, due to a drop in energy production and investment goods such as machinery.

• GE Industrial Production YoY NSA WDA (Oct): -12.4% (-10.2%, -12.6%)

• Fitch Ratings cut the credit rating on Greek debt to BBB+ with a negative outlook. This is the lowest in the Euro-zone and also the first time in 10 years Greece’s credit rating is below an A grade. It follows moves by Moody’s and S&P, which both have the credit outlook on negative watch.

• ECB Executive Board Member Juergen Stark said: “The lessons from the crisis need to be the right ones. We’re moving away from crisis management towards crisis prevention but the crisis isn’t yet over…Some developments on financial markets are due to excess liquidity. That’s why we decided a gradual withdrawal of operations…We need a functioning and a healthy banking system because that’s the basis for healthy growth. It’s not only a market failure but also a failure of state and policy.”

HAPPY TRADING TODAY!