Stocks cheered better than expected global economic data in a holiday shortened week of trading. US economic data remain positive. Weekly jobless claims decreased to 235,000—better than predicted and characteristic of a strong labor market as claims hover around a four decade low.
European economic data were light, highlighted by German factory orders missing expectations in November—reversing course after a robust +5% m/m October reading. November German retail sales climbed 3.2% y/y. C
Chinese official December manufacturing and services PMI data came in slightly below forecasts. Despite the miss, the readings remain consistent with continuing growth in the world’s second largest economy and the gradual economic pivot towards services.
In the week ahead data will be relatively sparse. December US data include retail sales and wholesale inventories. China releases December lending, inflation, money supply and trade figures. UK, France, Italy and Germany release November industrial production. The Bank of England will review interest rates during its monetary policy meeting.