EU unemployment, flash estimate euro area inflation; Germany
retail trade, labor market statistics, Bavaria CPI; France GDP,
CPI, PPI, consumer spending, housing starts; Italy unemployment,
CPI, cities CPI; trading updates from Remy Cointreau, SAS, Currys,
Sasol, ABB, EXOR
European stock futures were higher ahead of inflation data.
Asian stock benchmarks traded mixed after China PMI data indicating
contraction in factory activity. The dollar and Treasurys steadied;
oil futures were little changed; while gold edged lower.
Stock futures rose early Thursday, ahead of eurozone inflation
data due later today.
"European markets have lagged behind US counterparts of late,
but [Wednesday's] German inflation slowdown has provided the boost
the DAX and others were looking for," IG analyst Chris Beauchamp
"This means eurozone inflation data seems to be heading in the
same direction as the U.S., giving the ECB some latitude in its
monetary-policy approach. Once more it's the FTSE 100 left behind
by its peers. The lack of any continued rebound this year speaks to
ongoing disillusion among global investors regarding the U.K.
Meanwhile, the U.S. October PCE inflation report is also due
later Thursday. The core PCE price index is expected to show that
price pressures continued to moderate.
The big question is whether the Federal Reserve has to raise
interest rates again to further slow the economy and make sure
inflation decelerates to its 2% goal.
The Fed's Beige Book survey on Wednesday said the economy has
softened since the previous report at the end of summer. Price
increases "largely moderated" across the country, the Beige Book
found, and "most districts expect moderate price increases to
continue into next year."
The dollar steadied in Asia. Notable shifts in the Fed's message
this week from a couple of hawks on the Board of Governors
maintains the soft USD backdrop, Westpac said. Today's U.S. PCE
price index should reinforce the message that encouraging
disinflation trends are unfolding as well, Westpac said.
Treasury yields were steady early Thursday after dropping
further overnight as traders increased bets that the Fed is likely
to start cutting interest rates next year.
"The numbers over the past several weeks have suggested the
economy is slowing. [Wednesday's] upward revision to an already
strong Q3 GDP reading flies in the face of that cooling trend.
While one data point is unlikely to push the Fed to raise rates
again, it also won't push them any closer to declaring victory on
inflation and cutting interest rates, " said Chris Larkin, managing
director of trading and investing at E-Trade from Morgan
Oil futures steadied in Asia after global benchmark Brent crude
settled at its highest in more than three weeks on Wednesday. There
are growing expectations that OPEC+ could make deeper production
cuts at its meeting later today, which would be in addition to the
rollover of voluntary reductions from Saudi Arabia and Russia, ING
However, this suggests downside risk for oil markets if OPEC+
disappoint, ING added.
Gold edged lower early Thursday, but remains supported by
prospects of Fed rate cuts next year. Treasury yields have stayed
under pressure following Fed governor Waller's comments earlier
this week that monetary policy is well-positioned to return
inflation to a 2% target, ANZ said.
A JPMorgan Chase survey shows investors are increasingly
positioning for a hard economic landing and aggressive Fed policy
easing next year, ANZ said.
Copper prices gained as mine closures bring supply risks into
focus. The Panama government said it will shut the Cobre mine owned
by Canadian company First Quantum, following the decision from
Panama's top court that ruled the operation unconstitutional, ANZ
Risk of further supply disruptions eased after workers at MMG's
Las Bambas copper mine in Peru said they will return to work
Thursday. However, they vowed to continue pushing for a new
profit-sharing agreement, which could put copper supply at risk
again, ANZ added.
TODAY'S TOP HEADLINES
China's Manufacturing PMI Edged Lower, Signaling Continued
An official gauge of China's manufacturing activity indicated
contraction for a second consecutive month in November, signaling
continued weakness in the economy despite Beijing's recent efforts
to juice up growth amid a protracted housing slump.
China's official manufacturing purchasing managers' index
slipped to 49.4 in November from 49.5 in October, the National
Bureau of Statistics said Thursday. A reading above 50 indicates an
expansion in activity while a reading below it indicates
Fed's Beige Book finds economy has slowed - and so has
The U.S. economy slowed in November while inflation also tapered
off, according to a Federal Reserve survey, suggesting the central
bank could be finished raising interest rates if those trends
The survey, known as the Beige Book, said the economy has
softened since the previous report at the end of summer. The latest
survey covers the period of Oct. 6 to Nov. 17.
OPEC+ Mulls New Oil Production Cuts Amid Middle East
OPEC and its Russia-led allies are considering new oil
production cuts of as much as 1 million barrels a day, delegates
said Wednesday, despite tensions in oil markets amid the conflict
in the Middle East.
The move, which would likely send oil prices higher, could be
announced Thursday at a virtual meeting of the cartel. The meeting,
originally scheduled for last week, was postponed over
disagreements about production.
Why No One Wants to Pay for the Green Transition
In the past few years, Washington and Wall Street started
fantasizing that the transition to net-zero carbon emissions could
be an economic bonanza. "When I think climate change, I think
jobs," President Biden said. When Wall Street heard green energy,
it saw profits. As Ford Motor launched an electric Mustang and
pickup truck, its market value topped $100 billion for the first
This year the fantasy ended. With electric vehicle demand
falling short of expectations, manufacturers are dialing back
production and buying back stock instead. Offshore wind developers
have canceled projects. The S&P Global Clean Energy Index has
fallen 30% this year. Ford's market cap is down to $42 billion.
Israel Considers How to Remove Threat of Hamas Fighters in
TEL AVIV-As Israeli forces prepare for a renewed offensive
targeting Hamas's top leaders in the Gaza Strip, Israeli military
and political leaders are confronting the challenge of what to do
about the thousands of fighters that represent the group's power
To address that challenge, some Israeli and U.S. officials are
discussing the idea of expelling thousands of lower-level militants
from the Palestinian enclave as a way to shorten the war. The idea
is reminiscent of the U.S.-brokered deal that allowed Palestinian
leader Yasser Arafat and thousands of fighters to flee Beirut
during Israel's 1982 siege of the Lebanese capital.
OpenAI's New Board Takes Over and Says Microsoft Will Have
OpenAI's new board formally took over on Wednesday and said it
would add an observer role for partner Microsoft, capping a
dramatic chapter for the artificial-intelligence startup and
launching a new phase of difficult decisions.
The new board's initial three members were decided as part of
CEO Sam Altman's return last week after the previous board abruptly
fired him. The replacement directors' priorities include creating
an independent committee to review the events around Altman's
ouster, said Bret Taylor, the board's chairman.
Elon Musk Uses 'F' Word for Advertisers Boycotting Platform
Elon Musk said advertisers pulling their ads from his
social-media platform X can "go f-yourself."
Musk's platform in recent weeks has been grappling with the
departure of several large advertisers in the wake of a post by the
billionaire describing an antisemitic post as "the actual truth,"
which elicited a new round of criticism that he promotes
Google, Canada Reach Settlement Over News Payments
TORONTO-Alphabet Inc.'s Google unit reached a settlement with
Canada's government over a contentious law that would have forced
the tech company to pay Canadian news organizations for links to
Google has agreed to pay 100 million Canadian dollars,
equivalent to $73.6 million, indexed to inflation, into a fund,
said Canada's Heritage Minister Pascale St-Onge. Money from the
fund will go toward supporting the news sector.
Write to firstname.lastname@example.org
Expected Major Events for Thursday
00:01/UK: Oct UK monthly automotive manufacturing figures
00:01/UK: Nov CBI Growth Indicator Survey
05:30/NED: Oct PPI
05:30/NED: Oct Retail turnover
05:30/NED: Nov Flash Estimate CPI
06:00/FIN: 3Q GDP
07:00/DEN: Oct Unemployment
07:00/DEN: 3Q Preliminary GDP
07:00/TUR: 3Q GDP
07:00/GER: Oct Retail Trade
07:30/HUN: Oct PPI
07:30/SWI: Oct Retail Sales
07:45/FRA: Oct Housing starts
07:45/FRA: Oct Household consumption expenditure in manufactured
07:45/FRA: Oct PPI
07:45/FRA: Nov Provisional CPI
07:45/FRA: 3Q GDP - detailed figures
08:00/SWI: Nov KOF economic barometer
08:55/GER: Nov Labour market statistics (incl unemployment)
09:00/GER: Nov Bavaria CPI
09:00/BUL: Oct PPI
09:00/POL: 3Q GDP
09:00/ICE: 3Q GDP
09:00/ITA: Oct Unemployment
10:00/MLT: Oct PPI
10:00/CRO: Oct Industrial Production Volume Index
10:00/CYP: Oct PPI
10:00/GRE: Oct PPI
10:00/GRE: Sep Turnover Index in Retail Trade
10:00/ITA: Nov Provisional CPI
10:00/ITA: Nov Cities CPI
10:00/BEL: 3Q Final GDP
10:00/LUX: Oct PPI
10:00/CRO: Oct Retail trade
10:00/EU: Nov Flash Estimate euro area inflation
10:00/EU: Oct Unemployment
10:00/GRE: Oct Labour Force Survey
11:00/POR: 3Q GDP
15:59/UKR: Oct Industrial Production
16:59/SPN: Oct Budget deficit
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(END) Dow Jones Newswires
November 30, 2023 00:17 ET (05:17 GMT)
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