Analysts at BHH note that the economic calendar has been sparse today. The highlights are the continued reporting of national industrial output figures for November in Europe and the UK's trade figures. The UK and Spain reported industrial production figures, and both followed the lead of France yesterday to report stronger than expected data. Spain's industrial output jumped 1.8% in the month of November. The Bloomberg median forecast was for a 0.4% gain. The year-over-year seasonally adjusted pace is 3.2%, up from 0.6% in October (initially 0.5%).
"The UK's industrial output rose 2.1% in November, and the October decline was shaved to -1.1% from -1.3%. This is the largest increase in seven months. "The year-over-year pace stands at 2.0%. The Bloomberg median forecast was for a 0.7% pace. Manufacturing drove the increase. It rose 1.3% on the month and 1.2% year-over-year."
"On the other hand, the UK trade balance deteriorated more than expected. The overall trade balance (goods and services) rose to GBP4.167 bln, which is more than 10% larger than anticipated. The October shortfall was revised to GBP1.547 bln from GBP1.971 bln. The deterioration can be accounted for by merchandise trade. That trade deficit widened to GBP12.16 bln from a revised GBP9.885 bln (from GBP9.711 bln). Total imports jumped 8.4%. Imports of transport equipment (e.g., ships and aircraft) rose and the increase (GBP1.4 bln) accounts for around half of the trade deterioration. Exports rose 2.8%."