Citigroup Cash Infusion Has Given A Short-term Relief
However despite worst consumer confidence figures in 2-years, Fed continues to hint that there would not be a interest rate cut support to be delivered in the next round of rate decision
Overnight News Bullets
French Confidence Indicators generally better than expected. •French Housing Starts 3M/YoY (Oct) out at 10.5% vs. 12.9 prior.
Swedish Confidence Indicators generally slightly worse than expected.
Swiss Producer and Import Prices MoM/YoY (Oct) out at 0.2%/2.7% vs. 0.4%/2.9% expected.
Swedish PPI MoM/YoY (Oct) out at -0.4%/3.9% vs. 0.5%/4.7% expected.
German member state CPI (Nov) generally a lot higher than in Oct.
Swiss UBS Consumption Indicator (Oct) out at 2.229 vs. 1.992 prior.
German IFO (Nov) generally slightly better (higher) than expected.
US S&P/CS Home Price Index YoY (Sep) out at -4.5% vs. -4.1% expected.
US Consumer Confidence (Nov) out at 87.3 vs. 91.0 expected.
US Richmond Fed Manufacturing Index (Nov) out at 0 vs. -2 expected.
Japanese Large Retailers’ Sales (Oct) out at -1.8% vs. -1.2% expected.
Japanese Retail Trade MoM/YoY (Oct) out at 0.3%%/0.8% vs. 0.0%/0.7% expected.
Australian Construction Work Done (3Q) out at 2.8% vs. 1.7% expected.
German GfK Consumer Confidence (Dec) out at 4.3 vs. 4.4 expected.
Markets
FX: Yen stronger against 16 most-active currencies as carry trades are again unwound. EURJPY now at 160.65. Dollar consolidates against euro after pushing for 1.49 once again. EURUSD now around 1.48
Stocks: American stocks higher on news of Citigroup equity sales but momentum is lost in Asia with Nikkei down 0.45%.
Fixed Income: Treasuries and European bonds little changed. JGBs advance again on equity losses.
Commodities: Both crude and gold retreat on growth concerns and defensive dollar. Crude January contract now around $94 a barrel and gold spot $807 an ounce
What's going on?
News of Abu Dhabi investment arm’s injection of $7.5B worth of capital into Citibank failed to spur a sustained buying of financials as news from Wells Fargo that it would recognize $1.4B in Q4 on home equity loans dragged the sentiment down.
Despite worst consumer confidence figures in 2-years, Fed continues to hint that there would not be a interest rate cut support to be delivered in the next round of rate decision.
Retreatment in crude prices continue as growing concerns of economic slowdown are now adding to expectations of output uplift by OPEC