China November CPI and PPI were both stronger than expectations with the PPI increase the fastest in 5 years. Asian markets were mixed but both the Nikkei 225 (+1.23%) and the Shanghai Composite (+0.52%) closed higher.
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The Bundesbank raised estimates for German GDP in 2016 from +1.7% to +1.9% and in 2017 from +1.4% to +1.5%. After yesterday’s strong reaction to the ECB, European markets were modestly higher with the DAX up +0.22%. Yields on the 10-Yr. Bund eased to 0.357%.
October Wholesale Inventories fell -0.4%. December Michigan Sentiment was a robust 98.0. Baker Hughes reported an increase in oil rigs of 21 to 498.
The ECB rejected a plea for more time from Italian bank Monte Paschi and the euro sank to multi-year lows. The US$ Index moved higher. Yields on the Ten-Year Note also rose, to 2.466% and gold sank -0..9% to $1,161.90. Oil stayed firm, closing up 1.1% at $51.39.
After another flat open, indexes resumed their move higher, setting another round of new all-time highs. Markets were generally firm throughout the day, with buyers responding to any short pull back by stepping in. Accelerating into the close, indexes were moderately higher.