German manufacturing orders unexpectedly rose 0.5% m/m in October. This and others are discussed in the 6 December Market moving fundamental events overview.
6 December, HotForex – Stock markets tanked in Asia overnight, with Nikkei and Hang Seng both losing nearly 2% as technology, mining, consumer and industrial sectors came under pressure and a stronger Yen added to the sell-off in Japanese stock markets, while the ASX outperformed with a -0.44% loss as the AUD weakened on disappointing GDP numbers.
European Market Outlook
Australia GDP expanded 0.6% in Q3 (q/q, sa), mildly undershooting expectations but after an upwardly revised 0.9% rise in Q2 (was +0.8%). GDP climbed 2.8% y/y in Q3 after a revised 1.9% growth rate in Q2. AUDUSD fell to 0.7574 from 0.7613 just ahead of the report, as the undershoot of total GDP relative to projections combined with the sluggish household consumption growth pace squashed the mild jolt of rate hike optimism seen following modestly less dovish outing from the RBA.
U.K. and U.S. stock futures are also down and ongoing pressure on stock markets should keep EGBs supported and yields The calendar has German manufacturing orders at the start of the session, Swiss inflation data and the Eurozone retail PMI, with Brexit talks remaining a key focus ahead of next week’s EU summit.
German manufacturing orders rose in October
German manufacturing orders unexpectedly rose 0.5% m/m in October. Expectations had been for a correction from the strong September number, but while the last figure was revised up to 1.2% m/m from 1.0% m/m, the October number showed a further improvement of 0.5% m/m (median -0.2%). This confirms firm survey data and expectations for another strong GDP growth rate in Q4.
The German, but also the overall Eurozone industrial sector continues to fire on all cylinders with job creation accelerating, but price pressures also emerging now. Against that background, Draghi could tweak the forward guidance next week somewhat to clarify that in the central scenario net asset purchases will end in September next year, even if the door to another follow-on program remains theoretically open.
Main Macro 6 December Market moving fundamental events
- ADP Non-Farm Employment – Expectations – increase to 185k for November vs 235k previously.
- US Labor Costs (Q3)- Expectations – slip to 0.2% from 0.5%.
- BoC Rate Statement – Expectations – no change is expected to the 1.00% rate setting in today’s announcement. Bank-speak since the September rate increase emphasized that the Bank is in an “intense data-dependent mode” and will be cautious in the removal of further stimulus. Uncertainty remains elevated, notably around the (still) ongoing Nafta negotiations.
- Oil Inventories – Expectations – a decline by 0.25M Barrels from last week -3.429M outcome.
Support and Resistance Levels
This article about 6 December Market moving fundamental events was written by Andria Pichidi, Market Analyst at HotForex. The provided article is a general marketing communication for information purposes only. It does not constitute an independent investment research. Nothing in this communication contains an investment advice or an investment recommendation. It also does not contain a solicitation for the purpose of buying or selling of any financial instrument.
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