Economic data from across the globe showed a mixed outlook with figures from United States largely positive despite some disappointments. Durable goods orders managed to record substantial gains while the second estimate of third quarter GDP came in more positive than the earlier estimate, printing at 2.10% quarterly expansion versus the 1.50%. Nevertheless, consumer confidence continues to stumble and housing data came in weaker than forecast with existing home sales dropping and new home sales falling short of expectations. Across the Atlantic, more positive data from the Euro Area manufacturing and services failed to offset an increasingly dovish tone from ECB policymakers with deeper than projected interest rate cuts expected in the upcoming Governing Council meeting. The revision of UK GDP saw no changes to the stable growth already recorded while the Central Bank cautioned on inflation. The Bank of Japan also warned that the 2.00% inflation target would not be hit until the second half of 2016 amid deflationary pressures evidenced by the core annualized consumer price index reading at -0.10%.
Data Dependent Markets Anticipate Central Banking
Weekly Report - 29/11/2015