US data was mixed over the week, but still strong enough overall to keep the Fed on track to raise the target rate in December. Q3 GDP was revised up to +2.1%, as expected. New Homes Sales showed a strong 10.7% increase in October and Durable Goods Orders gained 3%. On a weaker note, consumer spending was sluggish at +0.1% in October, with July and August revised down. Consumer confidence was much weaker posting a large decline to 90.4 in November, its weakest reading in over a year.

Eurozone composite PMI increased to 54.4 from 53.9, the highest reading in four years. There was a corresponding improvement in the November German IFO to 109.0 and German Manufacturing PMI was above forecast at 52.6. Eurozone M3 Money Supply accelerated to 5.3% YoY in October.

In the UK, the Autumn Review took centre stage. There were some surprising changes but the overall stance of fiscal policy remained broadly unchanged, although spending cuts are now back-loaded.

In Asia, China posted disappointing October Industrial Production, falling 4.6%. Japan showed weak inflation of -0.1% (for the third month in a row) and monthly consumer spending fell 0.7% in October.

Thanks to our friends at London & Capital