Overnight Points of Interest

Posted by Graham Parlane on 28 November 2014

Ahead

# NZ Building Consents

# Japan CPI

# ANZ NZ Business Confidence

# UK Consumer Confidence

# Australian Private Sector Credit

# Eurozone CPI

Overnight

# Attention was on Europe given the absence of the U.S. due to the Thanksgiving holiday and the news was pretty good. A slew of European economic data hit the wires providing much needed better news for the beleaguered zone. Sharply lower oil prices in the wake of the OPEC meeting further supported proceedings. In the wash-up the EuroStoxx600 pushed moderately higher, ending up 0.35%.

# Members of the Organization of the Petroleum Exporting Countries decided on Thursday not to cut the group's oil-production target , instead sticking to its current target of 30 million barrels a day. U.S. crude oil futures fell sharply to a low of $69.11 a barrel, down more than $4 (5.5%) on the day and its lowest since May 2010. Commenting after the meeting OPEC secretary el-Badri said "We don't want to panic. I mean it." "We want to see the market, how the market behaves, because the decline of the price does not reflect a fundamental change." Crude oil prices have fallen 30% since June on sluggish global demand and rising production from the US. The fall in the oil price has been causing concern for several members of the oil cartel, as most require a price above $80 a barrel to balance their government budgets and many need prices to be above $100 a barrel.

# Germany’s unemployment rate unexpectedly fell to a record post-unification low of 6.6% in November, confounding expectations that the rate would rise on slowing global growth and recent geopolitical concerns with Ukraine and Russia particularly.

# Data showed Spain continues to dig itself out of the mire with Q3 gross domestic product for the period rising 0.5% quarter-on-quarter for 1.6% growth on the year. Whilst the growth data was welcome news Spanish inflation (well actually deflation) fell for a 5th straight month with prices down 0.4% on a year ago.

# In Italy manufacturing business confidence rose for a second month in a row, boosted by better order expectations from manufacturers of consumer and industrial goods.

# Whilst the data was generally more upbeat, German bonds took their cues from the lack of price growth, with the 10 year note hitting a new all-time low of 0.69%

# The USD was broadly, but only mildly, stronger in the holiday affected trade. It was no surprise that the worst affected currencies were those of key Oil producers of Russia, Norway and Canada. The NZD and AUD came off their highs in sympathy but look generally better bid in the wake of relatively positive NZ trade data and a surprisingly good Australian Capex number yesterday.