US Job Openings Continue to Expand

German industrial production figures stunned market participants after declining to levels last seen in August of 2014. The German Federal Statistics Office announced a -1.20% contraction during the month of December, falling deeper than November’s revised -0.10% while also missing expectations of a 0.40% expansion. This marks the 4^th contraction in the last 6 months and underlines the tenuous nature of global trade.  Consumer products declined by -1.40%, capital goods fell by -2.60% and energy production tumbled -3.00%. The decline in German factory orders over the same time period comes during the ongoing weakness in one of nation’s largest trading partners, China. While domestic demand is expected to rise even further and offset some external woes after documenting record low unemployment that will boost consumer spending in spite of low fuel prices.

Trade data released by the United Kingdom revealed the lowest trade deficit since September. The Office for National Statistics (ONS) report showed the deficit shrinking to -£9.92 billion in December, beating estimates of a deeper -£10.40 billion deficit and marking a steady improvement over the prior month’s revised -£11.50 billion. Cheap oil prices and unspecified goods have pushed import costs lower, seeing total imports for December tumble by -3.60% while exports also declined over the period by -0.80%. The full year trade data marked a higher deficit in comparison to 2014 after ONS reported the growing deficit falling to -£34.70 billion from -£34.40 billion. Concerns continue to arise from China’s slowdown while a tentative Federal Reserve and a strengthening Pound are still weighing on the economy, preventing Bank of England policymakers from adjusting monetary policy over the medium-term.