- China’s Wen: Global economic recovery is weakening
- Euro zone November final services PMI 46.7, up from flash 45.7. Up from 46.0 in October
- Euro zone October retail sales -1.2% m/m, -3.6% y/y, demonstrably weaker than Reuters’ median forecasts of -0.1%, -0.8% respectively
- DeMark sees China index rally as bears exhausted below 1,960 – Bloomberg (note it came out yesterday morning. Good timing given sharp rally overnight)
- RBA’s Lowe: Rate cuts proving effective in boosting overall economy
- More Lowe: Threshold level of low interest rate is around 1%
- BOJ’s Nishimura: BOJ has, and always will, be open to any new monetary policy scheme
- Spain October calendar-adjusted industrial output -3.3% y/y, demonstrably better than Reuters’ median forecast of -7.4%
- Spanish auction results
- Spain 10 year govt bond yield up 9 bps at 5.34%
- UK November sevices PMI falls to 50.2 from 50.6 in October, weaker than Reuters’ median forecast of 51.1. Lowest read since December 2010
- Ex-Greek FinMin Zanias: State reforms haven’t progressed quickly
- Greek bank stability fund head: Banks have huge capital, liquidity shortfalls
EUR/USD down at 1.3085 from early 1.3110. We rallied initially reaching session high 1.3127 where BIS was seen selling and that was that. As European stocks came off their best levels, and as periphery govt bond yields climbed, so EUR/USD came lower.
Early reports had buy orders clustered 1.3070/90 and they have cushioned, if not turned round, the sell-off.
USD/JPY sits at 82.20, effectively unchanged on the day.
Cable at 1.6101, about 10 pips down on the day in lacklustre trade. EUR/GBP marginally easier at .8124 from early .8134.
