Fundamental

Roubini Says:

• US job data extremely mediocre
• Sees advanced economies growth below potential
• Eurozone growth ‘weak at best’
• U.S.; Japan both at risk of double dip recession
• Bumpy road for recovery
• Hopefully we can avoid the double dip recession
• Fiscal adjustment in spain ‘Not Enough’
• US economy slowing
• Any stimulus in the U.S. wouldnt be meaningful
• Sees fiscal drag next year of as much as 1.5% of GDP

Good Morning:

The market had a limited reaction to worse than expected retail sales coming in at 0.1%; 0.3% survey and 0.0% prior reading.

The GBP traded lower after UK services PMI came in worse then expected at 51.3 versus the 53.0 survey and 53.1 prior reading.

As the euro trades on session highs against the USD, Eurozone final services PMI was 55.9; slightly better than the survey and prior showing of 55.6.

The market had a limited reaction to Switzerland’s monthly CPI release as traders await the U.S. non-farm payroll number due out in just under five hours from now. The reading was 0.0% versus the survey of 0.1% and prior showing of -0.7% and the CHF trades on session lows against the USD.

The ECB’s Nout Wellink, President of the De Nederlandsche bank, made the following comments:

• Talk of a double dip recession is irritation and irrelevant.
• The real future challenge is unemployment .
• Fiscal and political context is much more difficult.
• Financial market fragility is a major risk to recovery.

…

The Index was released as a contracting indicator for the 4th consecutive month at 47.5, better than the prior release of 46.6. The weak reading was attributed to a reduction in fiscal stimulus and uncertainty on the political front, the AUD and the market in general has a muted reaction to this release as everyone’s attention is focused on tomorrow mornings US employment report.