Increases In European And Chinese Manufacturing PMI
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At the beginning of the last month of the year, and thus the last month of the quarter, a lot of reports appear. The focus today is on the Manufacturing PMI reports.
Japan Capital Spending
The change in the overall value of capital investment made by companies in Japan has increased significantly. The current reading is at 9.8%, an increase of 5.2%.
Australia Private New Capital Expenditure
The change in the total inflation-adjusted value of new capital expenditures made by private businesses dropped significantly from 0.0% to -0.6%. So new capital expenditures made by private businesses have decreased and this may affect the economic situation of the country.
UK Nationwide HPI
The National House Price Index shows that the average change in house prices across the country has slowed year-on-year and month-on-month. Nationwide HPI (YoY) dropped from 7.2% to 4.4% while MoM fell below zero at -1.4%. This monthly decline was significant as it was expected to rise from -0.9% to -0.3%. To put it simply, the average houses dropped significantly in the analyzed periods. This study is carried out by the National Housing Association.
Retail Sales
Reports published by two countries of the old continent show a significant decrease.
In Germany, M/M retail sales fell from 1.2% to -2.8%. Which shows that the German economy is not in good shape and retailers are exposed to financial difficulties because fixed costs such as rent and energy bills will not change, and if they sell less they may not earn.
In Switzerland, the situation is similar to Germany, but the decline was larger. Sales fell from 2.6% to -2.5%. Growth was expected, and a significant fall may affect the condition of the country's currency (CHF).
Switzerland Consumer Price Index
In Switzerland, inflation remained at the previous level of 3.0%. However, there was a change in CPI M/M. CPI M/M fell from 0.1% to 0.0% In the monthly change, we can expect a return to the level below zero, ie deflation.
Source: investing.com
Speeches
There won't be many speeches today.
The first one took place at 7:00 CET and was addressed by a member of the Bank of Japan, Governor Haruhiko Kuroda. Traders watch his speeches closely as they are often used to drop subtle hints regarding future monetary policy and interest rate shifts.
Speeches by members of the European Central Bank attract further attention. At 9:00 CET, Andrea Enria, Chair of Supervisory Board of the European Central Bank, spoke. Further speeches will take place in the second part of the day. At 17:45 CET, Philip R. Lane, member of the Executive Board of the European Central Bank will speak, followed by a speech at 18:30 CET Frank Elderson, member of the Executive Board and Vice-Chair of the Supervisory Board of the European Central Bank. These speeches may give clues to the future of the eurozone's monetary policy.
Manufacturing PMI
The main report from the European, American and Chinese economies today is the Manufacturing PMI.
In China, the report appeared first. The current reading is positive, the current level is 49.4 and is higher than the previous one (49.2) and also higher than expected (48.9).
In Europe, the first report came from Spain and was positive. In Spain, it rose from 44.7 to 45.7. In Italy it also rose to 48.4. France and Germany also saw growth, but it was lower than those economies expected. In France, the current readings showed a level of 48.3, and an increase to 49.1 was expected. In Germany, a larger increase to 46.7 was also expected, but the readings showed a level of 46.2. In all countries of the European Union and the euro area, there was an increase in the PMI index, and thus also for the EU Manufacturing PMI. For the Eurozone, it increased from 46.4 to 47.1. And similarly to the main economies (Germany and France) of this region, a larger increase was expected to the level of 47.3
Also in the UK there was an increase in the Manufacturing PMI. The current level of 46.5 is higher than the expected (46.2) and the previous reading (46.2).
We have to wait until 16:00 CET for the reading from the United States, but it is expected that the U.S. The ISM Manufacturing Purchasing Managers Index will drop to 49.8 from the previous reading of 50.2.
EU Unemployment Rate
The unemployment rate fell slightly in the EU from 6.6% to 6.5%.
Brazil GDP (YoY) (Q3)
Brazil's economy expects GDP growth from 3.2% to 3.7%.
US Core PCE Price Index
Report about the changes in the price of goods and services purchased by consumers for the purpose of consumption, excluding food and energy will also appear today. It is expected to fall from 0.5% to 0.3%. The Core Personal Consumption Expenditure (PCE) Price Index measures price change from the perspective of the consumer. It is a key way to measure changes in purchasing trends and inflation.
Initial Jobless Claims
The weekly report on the number of individuals who filed for unemployment insurance for the first time during the past week will also appear today. The last reading was very negative and showed a significant increase in the number of people applying for this insurance (240K). This reading is expected to be better and drop to 235K.
Summary:
- 0:50 CET Japan Capital Spending (YoY) (Q3)
- 1:30 CET Australia Private New Capital Expenditure (QoQ) (Q3)
- 2:45 CET Caixin Manufacturing PMI
- 7:00 CET BoJ Governor Kuroda Speaks
- 8:00 CET UK Nationwide HPI
- 8:00 CET German Retail Sales
- 8:30 CET Switzerland Retail Sales
- 8:30 CET Switzerland Consumer Price Index
- 9:00 CET ECB's Enria Speaks
- 9:15 CET Spanish Manufacturing PMI
- 9:45 CET Italian Manufacturing PMI
- 9:50 CET French Manufacturing PMI
- 9:55 CET German Manufacturing PMI
- 10:00 CET EU Manufacturing PMI
- 10:30 CET UK Manufacturing PMI
- 11:00 CET EU Unemployment Rate
- 13:00 CET Brazil GDP (YoY) (Q3)
- 14:30 CET US Core PCE Price Index
- 14:30 CET Initial Jobless Claims
- 16:00 CET ISM Manufacturing PMI
- 17:45 CET ECB's Lane Speaks
- 18:30 CET ECB's Elderson Speaks
Source: Economic Calendar - Investing.com
