New Overnight Developments Abroad: Awaiting Comments of Bernanke and Trichet

December 7, 2009

The second week of December got off to a quiet week from a data standpoint, and the weekend served up no major developments.  Bernanke and Dudley of the Fed speak today.  So does Trichet of the ECB.

The dollar’s post-jobs data revival was extended by 0.9% against the kiwi, 0.8% against the Australian dollar, 0.6% against sterling, 0.5% relative to the Swiss franc, and 0.3% against the euro and Canadian dollar.  However, the yen recovered 0.5% against the dollar.

Gold sank another 2.2% and, at $1143.8 per troy ounce, is 6.7% or more than $80 lower than last Thursday’s record intra-day high.  Oil slid under $75 and is 0.7% weaker than Friday’s close.

The Nikkei (+1.5%) got a further boost from last week’s sharp retreat of the yen.  Stocks also climbed in China, Taiwan and Vietnam, but bourses show losses of 1.1% in Indonesia, 0.8% in Hong Kong, 0.7% in India and Thailand, 0.6% in Germany and Australia, 0.5% in Britain, and 0.3% in France and New Zealand.

Bund, JGB, and Treasury yields are somewhat lower.

German industrial orders fell 2.1% in October, unexpectedly ending a streak of seven consecutive increases and leaving demand 8.5% below the October 2008 level and 0.7% under the 3Q09 level.  Domestic capital goods orders, a harbinger of future business investment, dropped 1.2% on top of September’s 7.8% slump.  Overall domestic demand eased 0.5%, and foreign orders declined 3.5% in the latest month.

Euroland’s Sentix investor confidence measure improved to minus 5.5 in December from minus 7.0 in November.

The Czech trade surplus widened another 3.3% between September and October.  Compared to a year earlier, imports (-21.1%) fell much more sharply than the 11.2% drop recorded by exports.

Norwegian industrial production fell by 1.1% in October and 4.9% from a year earlier.  Factory sales rose 1.7% on month.

Japanese reserves advanced $16.9 billion last month and were $51.1 billion greater than in July.

Taiwanese consumer prices fell 1.9% on year in November and were 0.9% lower in January-November than a year earlier.

Australian job ads rose 5.2% last month, extending their recovery since July to 12.3%.

South Africa’s central bank did not acquire reserves any more rapidly in November than in October despite the rand’s sharp appreciation last month.

Swiss retail sales volume were 3.1% higher in October than a year before.

U.S. consumer credit and Canadian building permits data get released today.

Copyright Larry Greenberg 2009.  All rights reserved.  No secondary distribution without express permission.


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