Thanks to hopes of an easing of the conflict in the Middle East, Asian equity markets today began to recover further. Investors seem relieved that the US government has refrained from military retaliation after the Iranian missile attacks in Iraq and that no further escalation signals were recorded from Tehran. However, US President Trump announced new sanctions and reiterated the demand that Iran abandons all nuclear ambitions and stop its support for terrorism. As a result, the broad S&P 500 and the technology-heavy Nasdaq 100 reached new record levels. On the Tokyo Stock Exchange, the Nikkei Index subsequently rose by more than +2%. The oil price had dropped by more than -4% on Wednesday with the prospect of an easing of the conflict, and gold is now trading more than -3% below yesterday's high. For European stock markets, the futures signal a friendly start.
According to the labor market services company ADP, the private sector in the US created significantly more jobs in December than analysts had expected. According to the report, 202,000 new jobs were created in the private sector in December. An increase of approximately 160,000 new jobs had been expected. In addition, the previous month's figure was revised sharply upwards from the original 67,000 to 124,000 jobs. On Friday, the US government's monthly official employment report for December is eagerly awaited, and this report may also have a direct influence on the direction of the Fed's monetary policy. A sustainably strong labor market could force the Fed to refrain from further interest rate cuts – a popular demand by US President Trump.
Sentiment in the euro zone economy brightened in December for the second month in a row. The indicator calculated monthly by the EU Commission increased by 0.3 points to the 101.5 mark. The brighter sentiment was primarily driven by a more positive assessment of the service sector. In contrast, consumer confidence deteriorated. At the regional level, sentiment brightened particularly strongly in Italy and Spain. At the same time, the indicator for the business climate of the companies surveyed clouded over and is now at its lowest level in six and a half years.
German industrial companies recorded -1.3% fewer orders in November than in the previous month. In a year-on-year comparison, orders even declined by -6.5%. Already in October, order intake for the year as a whole was down -5.6%. The main reason for the disappointing development in November was a setback in large orders. From a regional perspective, it was observed that orders from abroad had fallen sharply by around -3% in November.
British Prime Minister Boris Johnson expressed himself positively after talks with EU Commission President Ursula von der Leyen about the transition period after the Brexit. Johnson had made it clear that the transitional phase after the EU withdrawal planned for 31 January should not last longer than eleven months. Von der Leyen said that time was extremely short and priorities had to be set to deal with issues such as education, transport, fisheries and much more.
|08:00||GE||Industrial Production (y/y)||-5.3%|
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