Number of unemployed in Germany decreased by 27,000, beating market expectations on a decrease by 2,000. This was a third consecutive month of decline. Roughly 43.1 million persons resident in Germany were in employment in November.
Eurozone CPI missed market expectations on no change and level of 0.0% and fell to -0.2% in December. Core CPI rose to 0.8%. This negative rate for euro area annual inflation in December is driven by a fall in energy prices (-6.3%, compared with -2.6% in November), while prices remain stable for food, alcohol & tobacco (0.0%, compared with 0.5% in November) and non-energy industrial goods (0.0%, compared with -0.1% in November). The only annual increase is expected for services (1.2%, stable compared with November).
Separate report on Unemployment Rate showed figures in line with market forecasts.The euro area seasonally-adjusted unemployment rate was 11.5% in November 2014, stable compared with October 20144, but down from 11.9% in November 2013. The EU28 unemployment rate was 10.0% in November 2014, down from 10.1% in October 2014 and from 10.7% in November 2013.
In the US session ADP job figures and Trade Balance data was released. Private sector employment increased by 241,000 jobs from November to December.Analysts were predicting smaller incline by 230,00. Payrolls for businesses with 49 or fewer employees increased by 106,000 jobs in December, up from 99,000 in November. Employment among companies with 50-499 employees rose by 70,000, down slightly from November’s increase of 73,000.
US goods and services deficit was $39.0 billion in November, beating forecasts on a decline to $42.3 billion and down $3.2 billion from $42.2 billion in October, revised. November exports were $196.4 billion, $2.0 billion less than October exports. November imports were $235.4 billion, $5.2 billion less than October imports.
However, the focus of the session was on FOMC Meeting Minutes. Despite strong GDP growth and unemployment constantly falling latest FOMC Meeting Minutes showed that “most participants thought the reference to patience indicated that the committee was unlikely to begin the normalization process for at least the next couple of meetings,” meaning that we cannot expect interest rate hike before April.
The main problem remains inflation concerns. “A number of participants saw a risk that it could run persistently below their 2 percent objective, with some expressing concern that such an outcome could undermine the credibility of the committee’s commitment to that objective,” the minutes showed.
From Eurozone, tomorrow, Retail Sales figures are scheduled for a release. Analysts are predicting 0.3% increase. In the US session Unemployment Claims data will be released. Decrease to 291,000 is anticipated.
Figures to watch:
Retail Sales (Thursday 11:00)
Unemployment Claims (Thursday 14:30)
