Global equities were down for the week closing out an otherwise positive year. Economic data were limited in the holiday-shortened week. In the US, November home sales fell -2.5% m/m, while wholesale and retail inventories grew after contractionary readings the prior month.
Europe appears healthier than most investors appreciate, with regional economic data consistently surprising to the upside in Q4—bullish for 2017.
November Japanese economic data were muted. Japan’s jobless rate ticked up unexpectedly, while household spending contracted further despite forecasts for growth.
November Chinese industrial profits accelerated to 14.5% y/y—likely a result of increased infrastructure spending this year.
In the week ahead, OPEC’s agreement to reduce oil production by 1.2 million barrels per day goes into effect, and December Purchasing Managers’ Indexes (PMIs) are released for China, the eurozone, UK and US.