Daily Review – Tuesday 18-Oct-2016

Daily Review – Tuesday 18-Oct-2016

US Empire State Manufacturing Index

General business conditions for the New York State declined to -6.8 according to the respondents to the survey.

This is the third consecutive month that the results came in negative which indicates that the conditions for the manufacturing industry in New York State is on the decline.

 

US Capacity Utilization Rate

US manufacturers, mines and utilities increased the utilization of their resources by 0.1% to 75.4%.

Consumer goods production expanded 0.2 percent, while output of business equipment decreased 0.2 percent. Construction materials climbed 0.8 percent after a 1.4 percent drop.

 

US Industrial Production MoM

Factory production in the US increased again by 0.1% in October after September reported a decrease of -0.5%

Production is beginning to revive due to a diminishing drag from a range of forces including lower oil prices, the strong dollar and weak overseas markets.

 

Canadian Foreign Securities Purchases

Foreign investment in Canadian securities totalled $12.7 billion in August. At the same time, Canadian investment in foreign securities slowed to $1.6 billion.

This resulted in a net inflow of funds of $11.1 billion into the Canadian economy in August.

 

UK MPC Member Broadbent Speaks

Ben Broadbent believes that the depreciation of the pound since the Brexit vote will help the economy to overcome shocks from the decision.

He also stated that inflation in the UK will likely be slightly above 2%  in the next two years.

 

UK Rightmove HPI MoM

The Rightmove House Price Index for September increased by an average of 0.9% compared to August.

The average asking price  for a home in the UK is now 309,122 pounds.

 

UK CB Leading Index MoM

The Conference Board Leading Economic Index (LEI) remained unchanged at 113.2 in August.

 

European Area Final Core CPI YoY

The final number for the European core CPI remained unchanged compared the previously released ‘flash’ numbers.

 

European Area Final CPI YoY

Similar to the core CPI numbers,  the final numbers for Europe’s main CPI remained unchanged.

Euro area annual inflation was 0.4% in September 2016, up from 0.2% in August.

 

Italian Trade Balance

Despite it being lower than what analysts forecasted, Italy exported more than it imported, resulting in a positive trade balance of 2.52B euro surplus.

The Italian economy has shown positive trade balance numbers since April 2013.

 

Japanese Revised Industrial Production MoM

After negative numbers in August, Japan’s industrial production showed an increase of 1.3% again in September.

The revised numbers tend to have a muted effect on the markets as the ‘preliminary’ numbers are released earlier.

 

Upcoming Data Releases

Lots of high impact data will be released on Tuesday with CPI numbers from the US and the UK being the most anticipated. ECD president Draghi will be speaking so stay tuned as to what he’s saying about the EU’s monetary policy.

 

US Core CPI MoM

The price of goods and services purchased by US consumers, excluding food and energy has been on a steady rise these past 5 years.

 

US NAHB Housing Market Index

Survey of about 900 home builders which asks respondents to rate the relative level of current and future single-family home sales.

 

 

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