- UK, retail sales disappointed, falling 0.3% month-on-month and 2.7% year-on-year, indicating weakness in consumer spending.
- In contrast, Eurozone inflation came in line with expectations, at 0.1% monthly and 2.9% annually, suggesting that price pressures remain subdued.
- The labor market in the Eurozone is expected to peak soon, with employment growth in manufacturing likely to turn negative before the end of the year. Wage growth is also expected to slow, as it is closely tied to inflation, and businesses may reduce compensation paid to employees as revenue growth slows.
- In the US, manufacturing production declined 0.7% in October, following a 0.2% increase in September. However, high-tech production continued to perform well, rising 1.4% in both September and October, marking the ninth consecutive month of growth. This divergence in performance within the US productive structures may explain the disparity between the NASDAQ and Dow Jones indices.
- Yields on US Treasuries reversed course, falling 7.4bp and 9.6bp for the 2Y and 10Y bonds, respectively, following a rise in weekly jobless claims. The EURUSD currency pair strengthened, threatening 1.09, but ultimately finished slightly higher at 1.0854.
- Crude oil prices declined sharply, increasing the likelihood of Saudi Arabia extending its production cuts. The prompt ICE Brent time spread is now in contango, indicating a supply glut. OPEC’s upcoming meeting on November 26 is expected to generate noise around the group’s policy stance.
- Building permits data will be released later today, with expectations of a lack of significant progress due to increased pressure on mortgage costs resulting from rising interest rates.