Canada's economy unexpectedly shrank by 0.2% M/M in November

Another volatile session on the European equity markets. Shares opened higher this morning following Wall Street’s gains late yesterday, but sentiment weakened during the session. Most European shares trade slightly lower. In the US, futures pointed to a big negative open, but the damage remains contained. US Equities trade with limited losses.

After being stable at 11.5% for four months, the euro zone unemployment rate dropped unexpectedly in December, to 11.4%. The decline was partly due to a sharp drop in the Italian unemployment rate, from 13.3% to 12.9%.

The Russian central bank unexpectedly cut its interest rate by 2% to 15%, after having raised it sharply in the previous months to support the rouble. The central bank said the risks of an economic slowdown are now higher than the risks associated with the rouble’s drop. The rouble weakens more than 2% against the euro.

The Spanish economy grew by 0.7% Q/Q during the last three months of last year, significantly stronger than the expected 0.5% Q/Q growth rate and the sharpest pace in seven years. The annual growth rate picked up to 2.0% Y/Y, from 1.6% Y/Y in Q3. Belgian GDP, on the contrary, disappointed growing by only 0.1% Q/Q.

Canada’s economy unexpectedly shrank by 0.2% M/M in November due to weaker manufacturing, mining and oil and gas extraction. On a yearly basis, GDP grew by 1.9%, the slowest pace since March. The Canadian dollar weakened substantially further after the figures.