Major economic releases which moved the market today - BBH

Research Team at BBH notes that there were four economic reports which filled the news stream today.  

Key Quotes

“First, China's inflation rose.  Headline CPI rose to 2.3% from 2.1%.  Producer prices jumped more.  They are up 3.3% from a year ago to stand at a five-year high.  In October, it was at 1.2%.  Remember that until September producer prices had been falling since March 2012 on a year-over-year basis.”  

“Second, France, like Germany earlier this week, reported disappointing industrial output figures for October.  Output had been expected to rise around 0.5%, but instead fell 0.2%.  Adding insult to injury, the September series was revised lower (-1.4% from -1.1%).  Manufacturing was also a big disappointment fall 0.6% instead of rising by as much.  The September figure was also revised down.  The aggregate figure will be released next week.  There is downside risk to the median guesstimate of 0.2%.”

“Third, Germany reported a smaller than expected trade surplus of 19.3 bln in October.  Exports rose 0.5%, which represents a smaller recovery from the 1.0% revised decline in September (from -0.7%).  Exports have risen 3% over the first 10 months of the year.  Imports rose 1.3%, a little more than expected.  The current account surplus was also a little smaller than expected.”

“Fourth, the UK reported smaller trade and current account balances in October.  The September figures were revised to show larger shortfalls, so the October improvement is more dramatic.  The overall trade deficit narrowed to GBP1.97 bln, which is the smallest in five months.  It is a third of the size of the September deficit that was revised to GBP5.81 bln (revised from GBP5.22 bln).”