Daily Review – Thursday 24-Nov-2016

Daily Review – Thursday 24-Nov-2016

US – Crude Oil Inventories

The EIA crude oil inventory report saw a drawdown of 1.3M barrels, after a big buildup of 5.3M barrels the week before.

 

US – Unemployment Claims

After unemployment claims dropped to a 40-year low (233K) in the previous reading, the week that ended Nov.19 saw a rebound of 18K to a total of 251K claims.

Despite this, filings for unemployment benefits have been below 300K, a level that is considered to be a healthy labor market, for 90 straight weeks. The longest streak since 1970.

 

US – Core Durable Goods Orders m/m

Orders for capital goods from US manufacturers, excluding orders for transportation equipment, rose 1.0% in October, after September only saw a revised 0.1% gain.

 

US – Durable Goods Orders m/m

Orders for capital goods that do include transportation equipment from US manufacturers rose to a staggering 4.8% in October, compared to a downwardly revised -0.3% in the preceding month.

Boeing Co. said it received 85 orders for aircraft in October, up from 55 in September.

 

US – New Home Sales

The sales of new single-family homes in the US dropped 1.9% to 563K in October, compared to a downwardly revised 574K in September (initially 593K).

 

US – Revised UoM Consumer Sentiment

The University of Michigan reported that its final index of US consumer sentiment rose to 93.8 from 91.6 in October.

The index has now reached a sex-month high and shows Americans became more optimistic about their finances and the economy after Donald Trump won the presidential election.

 

US – Revised UoM Inflation Expectations

In that same report, Americans expect the inflation for the next 12 month to be 2.4%, down 0.3% from the 2.7% in the previous month.

 

US – HPI m/m

The house price index rose 0.6% in September, compared to 0.7% in August.

Looking at quarterly numbers, Q3’16 rose 1.5% compared to Q2’16 and 6.1% compared to Q3’15.

 

US – Flash Manufacturing PMI

Initial manufacturing PMI numbers for November came in at 53.9, up from 53.4 in October.

 

UK – Autumn Forecast Statement

Chancellor of the Exchequer Philip Hammond delivered the UK’s Office of Budget Reform (OBR) “Autumn Statement” to parliament, the first since the Brexit vote in June.

Here are the highlights:

  • UK economy has shown resilience since Brexit vote, but it also means UK must take fiscal imbalances.
  • OBR raises 2016 forecast to +2.1% from +2.0% in March; cuts 2017 GDP to +1.4% from +2.2%; cuts 2018 GDP to +1.7% from +2.1%.
  • OBR abandons surplus target in 2019 – 2020 and plans to add £122B in borrowing over next 5 years to help the economy cope with Brexit impact.
  • Prioritize investment in infrastructure and innovation to help boost productivity.

EU – French Flash Manufacturing PMI

The French initial manufacturing PMI for November dropped 0.3 points to 51.5, compared to a revised 51.8 in October.

 

EU – French Flash Services PMI

The French initial services PMI for November increased 1.2 points to 52.6, compared to a revised 51.4 in October.

 

EU – German Flash Manufacturing PMI

The German initial manufacturing PMI for November dropped 0.6 points to 54.4, compared to a revised 55.0 in October.

 

EU – German Flash Services PMI

The German initial services PMI for November increased 0.8 points to 55.0, compared to a revised 54.2 in October.

 

EU – Flash Manufacturing PMI

The Euro Area initial manufacturing PMI for November dropped 0.5 points to 54.1, compared to a revised 54.6 in October.

 

EU – Flash Services PMI

The Euro Area initial services PMI for November increased 1.3 points to 54.1, compared to a revised 52.8 in October.

 

EU – German 10-y Bond Auction

Last German 10-year bond auction resulted in a 0.21% average yield and a bid-to-cover ratio of 2.0, compared to 0.12% and 1.5 during the previous auction.

 

Australia – Construction Work Done q/q

The total amount of construction work completed in Australia during Q3 declined by 4.9%, compared to Q2, which itself saw a revised 3.1% decline.

On an annual basis, Q3’16 declined 11.1% compared to Q3’15.

 

Upcoming Data Releases

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