Asia

Singapore GDP Contracted Last Quarter As Output Eased. Singapore’s economy shrank for the first time in five quarters after its manufacturing and services industries weakened, a contraction that may be short-lived as the global recovery strengthens. Gross domestic product fell an annualized 2.7 percent in the three months to Dec. 31 from the previous quarter, when it expanded a revised 2.2 percent, the trade ministry said in a statement today. The median of 11 estimates in a Bloomberg News survey was for a 1.3 percent contraction. (Bloomberg)

Indonesia Trade Surplus Jumps As Pressure On Central Bank Eases. Indonesia posted its biggest trade surplus in 20 months in November, easing pressure on the central bank to raise interest rates further to narrow a current-account gap and support the currency. The rupiah erased losses. The trade surplus grew to $777 million in November, from a revised $24 million in October, the statistics office said today. That exceeded the median estimate of $75 million in a Bloomberg News survey of 13 economists. Inflation was little changed in December at 8.38 percent, the statistics office said, compared with a median forecast for 8.33 percent. (Bloomberg)

India Factory PMI Falters In Dec On Slow Domestic Demand. India's factories lost momentum last month as softness in new domestic orders prompted firms to lower production growth, but demand from abroad picked up, a survey showed on Thursday. The HSBC Manufacturing Purchasing Managers' Index (PMI), compiled by Markit, fell to 50.7 in December from 51.3 in the previous month. The index, which gauges business activity in Indian factories but not its utilities, spent three months below the 50 mark that separates growth from contraction before rising above it in November. (Reuters)

China Factory Activity Surveys Confirm Slowing Momentum. China's factory activity slowed in December, official and private manufacturing surveys showed, reinforcing views that growth in the world's second-largest economy moderated in the final quarter of 2013. The final HSBC/Markit manufacturing Purchasing Managers' Index (PMI) slipped to a three month low of 50.5 in December from 50.8 in November. Thursday's reading was unchanged from a preliminary figure issued last month. (Reuters)

USA

Manufacturing Growth To Help Propel U.S. Expansion. Manufacturing grew in December at the second-fastest pace in more than two years, fueled by a gain in orders that will help propel the U.S. expansion. The Institute for Supply Management’s factory index eased to 57 from the prior month’s 57.3, which was the highest since April 2011, the Tempe, Arizona-based group said today. Readings above 50 indicate growth. Other data showed construction spending rose more than forecast in November and jobless claims declined last week. (Bloomberg)

Jobless Claims In U.S. Fall To Lowest Level In A Month. Applications for U.S. unemployment benefits declined last week to the lowest level in a month as the volatility typical during the year-end holidays waned. Jobless claims fell by 2,000 to 339,000 in the period ended Dec. 28, Labor Department data showed today in Washington. The median forecast of 26 economists surveyed by Bloomberg called for 344,000 claims. (Bloomberg)

American Consumers In 2013 Most Upbeat Since Before Recession. American consumers in 2013 were more upbeat than at any time in the previous six years as views on the economy, finances and the buying climate improved. The Bloomberg Consumer Comfort Index averaged minus 31.4 for 2013, the highest since 2007, when it was minus 10.5. The weekly index fell for the first time since mid-November, dropping to minus 28.7 for the period ended Dec. 29, from minus 27.4. (Bloomberg)

Europe

Euro Zone Manufacturing Grows; France Stumbles On. Manufacturing output in the euro zone posted its strongest growth since May 2011 in December — but analysts warned that the data point to a worrying divergence between core economies in the region. Euro zone manufacturing purchasing managers' index (PMI) rose to 52.7 in December, up from 51.6 in November, according to data from analysis firm Markit. The 50-point mark separates expansion from contraction. While Germany, the euro zone's largest economy, saw its manufacturing PMI rise to 54.3 in December from 52.7 in November, the currency bloc's second-largest economy, France, saw its index fall to a seven-month low of 47.0 in December, down from 48.4 in November. (CNBC)

UK Manufacturing Growth Remains Strong. The UK's manufacturing sector continued to see strong growth last month, according to a closely watched survey. The latest Markit/CIPS Manufacturing Purchasing Managers' Index (PMI) recorded a level of 57.3 for December. While this was down slightly from November's near three-year high of 58.1, it was still well above the 50 mark that indicates expansion. Markit said that the latest figure suggested the manufacturing recovery remained "on track". (BBC)

Currencies

Dollar Up Vs. Pound, Euro; Falls Against Yen. The dollar was mixed Thursday, rising against the pound and euro but falling against the yen, as investors digested manufacturing data in a holiday week. The euro fell to $1.3668 from $1.3758 late Tuesday, ahead of the New Year’s holiday. The British pound also moved lower to $1.6446 from $1.6560. Meanwhile, the dollar fell to ¥104.73 from ¥105.28 late Tuesday. The ICE dollar index, a gauge of the U.S. currency against six other majors, rose to 80.555 from 80.155 late Tuesday. The Aussie traded at 89.08 cents from Tuesday’s 89.23 U.S. cents, up from its intraday low of 88.40 U.S. cents. (Market Watch)

Commodities

Oil Collapses By $3, Libyan Supply Weighs, Storm Hits Demand. Oil prices collapsed on the first trading day of 2014 as Libya prepared to restart a major oilfield, and with speculation of a sharp rise in crude stockpiles in Cushing, Oklahoma. Brent crude ended $3.02 a barrel lower at $107.78, the largest one-day percentage drop since late June. U.S. crude sank by as much as $3.08 per barrel to a low of $95.34, after breaking a key technical level. The contract settled $2.98 lower at $95.44, its largest one-day percent drop since November 2012. (Reuters)

Gold Rallies After Worst Annual Loss In 32 Years As Equities Drop. Gold rose nearly 2percent on Thursday as sharp losses in the equity market prompted funds to buy bullion on the first trading day of the new year after the metal's worst annual decline in more than 30 years. Spot gold rose to a two-week high of $1,230.65 an ounce late in the New York session when losses in the U.S.stocks market deepened. It was last up 1.7 percent at $1,226.19 by 2:15 p.m. EST (1915 GMT), marking bullion's best one-day rise since Oct. 22. Among other precious metals, silver rose 3.8 percent to $20.06 an ounce. Platinum was up 2.3 percent at $1,402 an ounce, having lost 12 percent in 2013. Palladium rose 2 percent to $725.50 an ounce. It was the only precious metal to chalk up a positive performance in 2013, gaining nearly 2 percent. (Reuters)