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Japan Manufacturing Growth At 20-Month High





Japan's manufacturing activity expanded at the fastest pace in twenty months in November, as output growth quickened, the latest flash survey from Markit Economics showed Tuesday. The Markit/ Nikkei Manufacturing Purchasing Managers' Index, or PMI, rose to 52.8 in November from 52.4 in October. A score above 50 indicates expansion in the sector. Manufacturing output cotniuned to grow sharply in November and the latest rate of increase was the fastest since March 2014. At the same time, new orders rose at a slower rate in November, while growth in exports orders accelerated to a five-month high. On the price fornt, input prices climbed at the fastest rate in four months, although inflation remained historically muted. The final manufacturing PMI figures will be published on 1st December


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US economy expands in third quarter





The US economy expanded at a better pace in the third quarter than previously projected, as businesses slashed an inventory bloat less aggressively than initially expected. Based on a Commerce Department data , the gross domestic product gained at a 2.1% annual pace, not the 1.5% rate it reported in October. The economy continues to improve relative to its potential. Referring to this development, the Federal Reserve has the reason to hike interest rates in December, said Chris Rupkey, Chief Financial Economist at MUFG Union Bank. Meanwhile, consumer confidence plunged further in November, touching its 14-month low, as sentiment on the labor market suddenly soured.


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Australia Construction Work Drops 3.6% In Q3





The total value of construction work done in Australia slipped a seasonally adjusted 3.6 percent on quarter in the third quarter of 2015, the Australian Bureau of Statistics said on Wednesday - standing at A$49.040 billion. That missed forecasts for a decline of 2.0 percent following the 1.6 percent increase in the second quarter. On a yearly basis, construction work was down 3.7 percent. The value of building work added 0.6 percent on quarter and 6.4 percent on year to A$24.156 billion. Residential work gained 2.0 percent on quarter and 12.4 percent on year to A$15.523 billion, while non-residential work fell 1.9 percent on quarter and 3.0 percent on year to A$8.633 billion. The seasonally adjusted estimate for engineering work completed slipped 7.3 percent on quarter and 11.7 percent on year to A$24.884 billion in Q3. Also on Wednesday, the government noted that skilled vacancies were up 0.6 percent on month in October after rising a downwardly revised 1.1 percent in September (originally 1.8 percent).


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Brazil Holds Key Rate For Third Meeting





Brazil's central bank left its key interest rate unchanged at a nine-year high for the third straight meeting late Wednesday. The monetary policy committee decided to hold its key Selic rate at 14.25 percent. Two members voted to hike the rate by 50 basis points, while other six members voted to keep it on hold. Inflation rose to a 12-year high of 9.93 percent in October. At the same time, the economy entered a technical recession in the second quarter. The increase in inflation has broken the consensus on the committee and sparked a debate on whether further tightening is needed, Neil Shearing, an economist at Capital Economics, said. Rate cuts to help out the struggling economy are clearly way off the agenda, he said.


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EU flags potential economic troubles on imbalances





The European Commission warned of potential economic troubles in 12 of the 19 eurozone countries, including Germany, and findings will be released in February. Through its monitoring policy, the commission said it will closely look at imbalances in the following countries: Austria, Belgium, Estonia, Finland, France, Germany, Ireland, Italy, the Netherlands, Portugal, Spain, and Slovenia. The policy was unveiled at the peak of the euro debt crisis. High trade surplus was attributed to Germany, leaving it susceptible to an economic slowdown elsewhere. The commission added the six nations, Bulgaria, Croatia, Hungary, Romania, Sweden, and the United Kingdom, that do not use the euro will face renewed monitoring as well.


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Singapore Dollar Falls To 2-day Low Against U.S. Dollar


The Singapore dollar weakened against the U.S. dollar in the Asian session on Friday. Against the greenback, the Singapore dollar fell to a 2-day low of 1.4097 from an early high of 1.4070. At yesterday's close, the Singapore dollar was trading at 1.4081 against the greenback. If the Singapore dollar extends its downtrend, it is likely to find support around the 1.42 area.


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Americas Roundup: Dollar Rises on Ecb, Snb Rate-Cut Expectations, Gold Hits Near 6-Year Low-November 28th, 2015





Market Roundup
Canada job vacancies rise in Q2, best opportunities in resource rich west.
BoE's Carney says continues to see strong UK domestic demand.
Chile central bank considered both hold and hike in Nov - minutes.
Dollar hits 8-month high as easing fears hammer euro, SNB EURCHF intervention tipped pre-ECB.
US. bond prices rise as world stock markets drop, US yields fall with German yields on ECB stimulus bets.
Black Friday for China stocks but metals not so heavy, industrial metals see 1st weekly rise since Oct.
Gold slips to near 6-year low, set for 6th straight weekly drop, despite ample Chinese demand.
Looking Ahead - Economic Data (GMT)
21:45 New Zealand Building Consents* Oct -5.7%-previous
23:30 Australia TD-MI Inflation Gauge*Nov 0%-previous
23:50 Japan Industrial output prelim mm *Oct forecast 1.9%, 1.1%-previous
23:50 Japan IP Forecast 1 month Ahead*Oct 4.1%-previous
23:50 Japan IP Forecast 2 month Ahead*Oct -0.3%-previous
23:50 Japan Retail Sales YY*Oct forecast 0.8%, -0.2%-previous
05:00 Japan Construction Orders YY*Oct 6.7%-previous
05:00 Japan Housing Starts YY* Oct forecast 2.9%, 2.6%-previous
Looking Ahead - Events, Other Releases (GMT) 01:00
Japan- Bank of Japan Governor Haruhiko Kuroda speaks to business leaders in Nagoya


Currency Summaries EUR/USD is likely to find support at 1.0560 levels and currently trading at 1.0594 levels. The pair has made session high at 1.0603 and hit lows at 1.0567 levels. The dollar rose against euro on Friday, hitting an eight-month high against euro as speculation the Swiss National Bank would follow the European Central Bank in cutting deposit rates put bearish pressure euro. Expectations of growing interest rate differentials between the dollar and major European currencies have pushed the dollar up against most of the major currency pair. Most analysts anticipate the Federal Reserve will raise U.S. interest rates next month, strengthening the dollar, while the ECB and SNB are expected to announce further easing. The euro rebounded in afternoon U.S. trading to move back above $1.06 after falling near seven-month lows in overnight trading. It was last down 0.1 percent against the dollar to $1. single currency is down 3.7 percent versus the dollar so far this month as markets anticipate the ECB announcing a loosening of monetary policy at its Dec. 3 meeting. To the upside, immediate resistance can be seen at 1.0637. To the downside, immediate support level is located at 1.0577 levels. GBP/USD is supported in the range of 1.5026 and currently trading at 1.5039 levels. It reached session high at 1.5071 and hit low at 1.5029 levels. Sterling slipped to a three-week low against the dollar on Friday after data showed the British economy slowed in the third quarter, bolstering market expectations that the Bank of England will not raise interest rates any time soon. Despite better growth proposition from the Office for Budget Responsibility this week that accompanied the finance minister's spending review, Friday's numbers showed the UK economy grew just 0.5 percent from July to September, slowing from 0.7 percent the previous quarter. Sterling fell half a percent on the day to $1.5032 after the data, its lowest in three weeks and just five ticks away from a seven-month low of $1.5027 reached earlier in the month. It recovered some losses later on Friday but still traded down 0.3 percent at $1.5049. To the upside, immediate resistance can be seen at 1.5090. To the downside, immediate support level is located at 1.5027levels. AUD/USD is supported around 0.7153 levels and currently trading at 0.7191 levels. It hit session high at 0.7248 and made session lows at 0.7180 levels. The Australian dollar edged lower against US dollar on Friday, after investors remained cautious after Chinese stocks posted their biggest intraday loss since August, hurting commodity prices. Dollar broadly remained stronger on the day as traders remained optimistic about U.S. interest rate increase in December. Against the U.S. dollar, the Aussie slipped at $0.7190, having touched a one-month peak of $0.7283 on Wednesday. The central bank's next policy meeting is on Dec. 1 and economists expect the RBA to keep interest rates at a record low of 2.0 percent. To the upside, immediate resistance can be seen at 0.7348. To the downside, immediate support level is located at 0.7180 levels. USD/CAD is supported at 1.3315 levels and is trading at 1.3367 levels. It has made session high at 1.3375 and lows at 1.3346 levels. The Canadian dollar weakened against U.S. dollar on Friday, as the crude oil prices dragged down by falling oil prices amid fresh volatility in Chinese stocks, while Canadian producer prices fell more than expected. Crude oil prices fell as disappointing Chinese data and concern over a global energy supply glut overshadowed geopolitical concerns. Chinese declined sharply more than 5 percent after the stock regulator had initiated a probe on brokerages to include the country's fourth-biggest securities firm. The currency's strongest level of the session was C$1.3292, while its weakest was C$1.3374, a three-day low. To the upside, immediate resistance can be seen at 1.3338. To the downside, immediate support level is located at 1.3315 levels. Equities Recap European shares retreated from a three-month high on Friday, hit by a drop in shares of mining companies after a slump in Chinese equities. Anticipation of further stimulus by the European Central Bank next week helped to cushion the fall. UK's benchmark FTSE 100 closed down by 0.27 percent, the pan-European FTSEurofirst 300 ended the day down by 0.27 percent, Germany's Dax ended down by 0.27 percent, France's CAC finished the day down by 0.36 percent. U.S. stock ended little changed in light trading on Friday, with consumer stocks falling as investors fretted over early reports on the U.S. holiday shopping season and Disney's subscriber losses weighed on the market. Dow Jones closed down by 0.08 percent, S&P 500 ended up by 0.07 percent, Nasdaq finished the day up by 0.02 percent. Treasuries Recap U.S. Treasuries prices edged up on Friday and benchmark yields hovered at their lowest levels in over three weeks as global stock market losses stoked demand for lower-risk government debt. Benchmark 10-year Treasuries notes were up 3/32 in price for a yield of 2.222 percent, down 1 basis point from late on Wednesday. Earlier, the 10-year yield touched 2.204 percent, the lowest level in more than three weeks. Commodities Recap Gold dropped almost two percent to a near six-year low on Friday, set for a sixth straight weekly decline under pressure from a firm U.S. dollar and prospects of a U.S. interest rate rise next month.Spot gold hit $1,052.46 an ounce, its lowest since February 2010, and was down 1.3 percent at $1,057.50 by 12:59 p.m. EST (1759 GMT). Spot prices were down about 2 percent for the week. U.S. gold futures hit a six-year low of $1,051.10 an ounce before closing down 1.3 percent at $1,056.20 and skidding to a sixth straight weekly decline. Oil settled lower in light post-holiday volume in New York on Friday as the dollar's rally to an eight-month high and a tumble in Chinese equities added pressure to oversupplied crude futures. WTI settled down $1.33 at $41.71 a barrel, trading just over 280,000 lots, data showed. Activity in WTI has dwindled since Monday's volume above 500,000 lots, which is typical of a busy day in oil. Benchmark Brent oil the session down 60 cents at $44.86.


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Gold Ends Week At 5-year Year Lows





Gold prices fell for a sixth consecutive week, with Friday's losses pushing the preious metal to its lowest in more than five years. A stronger dollar contributed to the decline. Gold futures for December delivery settled down $13.80, or 1.3% at $1,056.20 an ounce on Comex. Expectations that the Federal Reserve will raise interest rates next month are weighing on prices.


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Japan Industrial Production Climbs 1.4% In October





Industrial output in Japan gained a seasonally adjusted 1.4 percent on month in October, the Ministry of Economy, Trade and Industry said in Monday's preliminary reading - rising for the second straight month. That missed forecasts for an increase of 1.8 percent, although it was up from 1.1 percent in September. On a yearly basis, industrial production slipped 1.4 percent - also missing expectations for a decline of 0.9 percent following the 0.8 percent drop in the previous month. Upon the release of the data, the METI maintained its assessment of industrial production, saying that it has been fluctuating indecisively. Industries that mainly contributed to the monthly increase included business oriented machinery, transport equipment and electronic parts and devices. According to the survey of production forecast in manufacturing, production is expected to rise 0.2 percent in November and fall 0.9 percent in December. Industries that mainly contributed to the increase in November included communication electronics equipment, electrical machinery, and electronic parts and devices. Industries that mainly contributed to the decline in December included business-oriented machinery, transport equipment and electronic parts and devices. Shipments in October were up 2.1 percent on month, rising for the second straight month. They were also down 0.8 percent on year. Industries that mainly contributed to the increase included transport equipment, business oriented machinery and electronic parts and devices. Inventories in October dipped 1.9 percent on month, falling for the second straight month. They were also up 0.2 percent on year. The inventory ratio in October fell 3.0 percent on month, falling for the second consecutive month. It also fell 0.5 percent on year. Also on Monday, the METI said that the total value of retail sales in Japan was up 1.8 percent on year in October - topping forecasts for an increase of 0.9 percent following the 0.1 percent decline in September. Sales from large retailers were up 2.9 percent on year, just missing forecasts for an increase of 3.0 percent but still up from 1.7 percent in the previous month. On a seasonally adjusted monthly basis, retail sales advanced 1.1 percent - beating forecasts for a gain of 0.3 percent and up from 0.8 percent in the three months prior.


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Treasuries Rise as China Stock Decline Drives Demand for Safety





Treasuries soared as it heads for their biggest gain in 2 weeks, as a fall in Chinese shares drove demand for the relative safety of U.S. government securities. The U.S. 10-year yield declined three basis points to 2.21% as of 7:01 a.m. in London, according to Bloomberg Bond Trader data. The benchmark 2.25% note due in November 2025 advanced 1/4, or $2.50 per $1,000 face amount, to 100 3/8. Treasuries fell1.1% over the past month, the worst performer of 26 bond markets around the world tracked by Bloomberg and the European Federation of Financial Analysts Societies.


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