European Banks Drive Stocks Lower

Data from Statistics Canada reported a higher than expected figure for building permits during the month of December. Building permits soared by 11.30%, exceeding forecasts of 5.60% by a wide margin after November’s decline of -19.90%. Residential permits climbed by 16.30%, mostly pushed by multi-family homes and condos jumping by 39.10%. Single-family homes reported a small contraction of -0.10%. According to the statistics office, all regions of the country registered growth with Alberta recording the biggest gains of 26% despite being hit by the ongoing softness in the oil patch. The Bank of Canada opted to leave monetary policy unchanged during their first meeting of the year in January, leaving rates at 0.50%, keeping borrowing costs accommodative for home buyers. Following the building permits figure, the Canadian dollar gained further versus the US dollar, with the USDCAD pair dropping to 1.3936.

Industrial production in Spain expanded at a slower rate in December according to results released by the Spanish National Statistical Institute. Industrial output rose by 3.70% on annualized basis after increasing by a revised 4.30% in the previous month while missing estimates of 4.10%. The growth was mainly attributed to ambitious gains in equipment goods and intermediate goods production which improved by 7.70% and 6.60% correspondingly.  Nevertheless, a -3.50% decline in energy production dragged on the figure. Over the whole year, Europe’s fourth biggest economy reported 3.20% growth in industrial production compared to 2014 with capital goods and durable consumer goods aiding the push. As global demand continues to ebb, the European Central Bank is preparing for further stimulus after hints from European Central Bank President Mario Draghi in order to help spur demand and push inflation back towards 2.00%.