Morning Dealing Room Technical Report

Market Comment

Australia

Australia recorded a trade deficit of A$3.31B (vs A$2.60B deficit expected, A$2.32B deficit in September), according to the government.

Australia: The Australian Industry Group Australian Performance of Services Index (Australian PSI) was down 0.7 point MoM to 48.2 in November. Key findings included: “Property & business services dropped 6.0 points to 48.6, while transport & storage was stable (down 2.5 points to 49.8). The communications sub-sector, in negative territory since December 2011, contracted again (down 1.6 points to 40.3). (…) The retail trade sub-sector fell 4.7 points to 45.2 after a stable month in October. Wholesale trade (up 0.3 points to 44.5) contracted for a fourth month after July’s brief expansion.”

Foreign Exchange

The Euro In Europe, ECB cut its Deposit Facility Rate to -0.3% vs -0.2% previously and kept unchanged its Main Refinancing rate (0.05%) and Marginal Lending Facility rate (0.3%). ECB disappointed investors as new measures didn’t include an expansion of monthly asset purchases. Separately, Euro zone retail sales fell 0.1% in October, at the same pace than in September. Economists anticipated a 0.2% increase. Finally, euro zone PMI composite index was 54.2 in November in final estimation from 54.4 in previous one and 53.9 in October. UK PMI composite index climbed to 55.8 in November from 55.4 in October. It was expected to be 55.