US PPI inflation slowed from 1.5% Y/Y to 1.4% Y/Y in November

ANALYSIS | 12/12/2014 15:23:07 GMT

European shares opened lower this morning, copying the correction in US Equities late yesterday. The further drop in the oil price kept shares under pressure. Most European indices trade 1.5% lower. In the US, stocks opened lower too with the S&P shedding 0.4%.
The International Energy Agency lowered today its outlook for global demand growth in 2015 and warned that if OPEC maintained production levels, the oversupply would reach 2 million barrels per day, keeping the price under further downward pressure. The Brent oil price dropped to new 5‐year lows, trading currently at $62.5/barrel.
Banks stepped up their repayments of old LTRO loans, as the ECB said banks will repay almost €40 billion of emergency loans, adding to pressure on the ECB to take further action to meet its balance sheet target.
US PPI inflation slowed from 1.5% Y/Y to 1.4% Y/Y in November, in line with expectations. Core PPI excluding food & energy stabilized at 1.8% Y/Y as downward price pressures were mainly based in energy.
University of Michigan consumer confidence was much better than expected. In December, the indicator rose from 88.8 to 93.8 (89.5 expected), further confirming strength in consumer sentiment after yesterday’s strong retail sales.
Consumers appear to be drawing confidence from the lower oil price.

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