Daily Market Report - 01/12/2015

Yesterday German retail sales slipped in October, amid signs consumer sentiment in Europe's top economy is starting to wane, official data showed on Monday. Retailers' sales declined by 0.4 percent in October compared with September. The previous month retail sales had stagnated. 

German consumer prices inched higher in November but the annual growth rate remained far below the European Central Bank's target, giving fresh impetus to widespread expectations in financial markets that the ECB will beef up its stimulus efforts on Thursday.The German data, together with Italian inflation figures out earlier Monday, add to expectations that the ECB will announce a further set of measures in an effort to curb prices in the Eurozone. 

The ECB is targeting medium-term inflation of close but below 2%, but stimulus measures--such as a monthly 60 billion euro ($63.53 billion) asset purchase program and record low policy rates--haven't managed to kick-start to prices yet, partly because of global growth concerns kept energy prices at low levels.

UK consumer credit continued to grow in October at rates not seen since 2006, while mortgage approvals edged higher after a dip in the previous month, Bank of England data showed today. Lending to consumers rose by £1.2billion last month, up 8.2 per cent compared with October last year, prompting some concerns about people's reliance on personal loans, overdrafts and credit cards in order to make ends meet.

Meanwhile, some 69,630 mortgages with a collective value of £12.2billion were approved for house purchases in October, marking the highest figure seen since 70,748 approvals were recorded in August. The figures suggest Britain's housing market is starting to accelerate again after a dip last year when tighter rules on mortgage lending took effect. 

The forces of a strong dollar, weak oil prices and tepid global demand combined to send the Chicago PMI, lower. making the figure its sixth contraction of the year. The or business barometer, decreased 7.5 points to 48.7 in November from 56.2 in October. A sharp 15.3 point-fall in new orders dragged the headline index below the 50 line dividing expansion and contraction. 

Key Announcements
08:55- EUR : German Unemployment Rate – expected to remain unchanged at 6.4%
15:00 – USD: ISM Manufacturing PMI  expected to rise to 50.3 from 50.1