Asia

Japan’s Exports Rise Most In 8 Months In Recovery Sign. Japan’s exports rose the most in eight months in October, supporting an economy that fell into recession last quarter. Overseas shipments rose 9.6% from a year earlier to the highest level since October 2008, the finance ministry said, compared with the median estimate for a 4.5% increase in a Bloomberg News survey. Imports grew 2.7%, leaving a trade deficit of 710b yen ($6b). (Bloomberg)

China Manufacturing Activity Hits Six Month Low. Activity in some of China's factories and workshops hit a six month low in November, a fresh survey has shown. The preliminary data from lending giant HSBC, called the purchasing manager's index (PMI), measures a number of variables including new export orders. It showed that factory output contracted in November for the first time in six months. The preliminary PMI reading came in at 50.0 for November, down from October's reading of 50.4. A reading of below 50 indicates that factory activity is contracting. November's reading was the lowest since May and compared with analysts expectations for a reading of 50.3. (BBC)

USA

U.S. Factory Activity Growth Slips In November: Markit. The U.S. manufacturing sector slowed in November, falling to its lowest rate of growth since January while a gauge of new orders also fell for a third straight month, an industry report showed on Thursday. Financial data firm Markit said its preliminary or "flash" U.S. Manufacturing Purchasing Managers Index fell to 54.7 from October's final reading of 55.9. Economists polled by Reuters had expected it to rise to 56.4. A reading above 50 signals expansion in economic activity. The index was at its lowest level since January, as was the new orders sub index. Output fell from 57.8 in October to 55.6, also at its lowest since January, when severe weather impacted economic activity. (Reuters)

U.S. Underlying Inflation Rising; Economy Firming Broadly. Underlying inflation pressures rose in October, even as falling gasoline prices kept overall U.S. consumer prices in check, bolstering expectations of a mid-2015 interest rate hike from the Federal Reserve. The Labor Department said on Thursday its so-called core Consumer Price Index, which excludes food and energy, increased 0.2%, the largest increase in five months, after nudging up 0.1% in September. In the 12 months through October, the core CPI rose 1.8% after rising 1.7% in September, which should ease fears about deflation. However, falling gasoline prices, which offset rising rent, household furnishings, airline, recreation, new motor vehicles and medical costs, left the overall CPI unchanged last month after a 0.1% gain in September. (Reuters)

U.S. Jobless Claims Fall; Continuing Claims Lowest Since 2000. The number of Americans filing new claims for unemployment benefits fell less than expected last week, but continued to point to strengthening labor market conditions. Initial claims for state unemployment benefits slipped 2,000 to a seasonally adjusted 291,000 for the week ended Nov. 15, the Labor Department said on Thursday. The prior week's data was revised to show 3,000 more applications received than previously reported. (Reuters)

U.S. Existing Home Sales Hit One-Year High In October. U.S. home resales jumped to their highest level in more than a year in October and outpaced the sales level a year ago for the first time in 2014, further evidence the housing market is on a recovery path. The National Association of Realtors (NAR) on Thursday said existing home sales rose 1.5% to an annual rate of 5.26 million units, the highest rate since September of last year. Sales rose 2.5% compared to a year ago, the first time since October 2013 that resales have risen above the prior-year levels. Economists polled by Reuters had forecast sales falling to a 5.16 million-unit pace, from an upwardly revised rate of 5.18 million units in September. (Reuters)

Leading Economic Indicators In U.S. Rise More Than Forecast. The index of U.S. leading indicators increased more than forecast in October, as gains in manufacturing and easier credit boosted the world’s largest economy. The Conference Board’s index of U.S. leading indicators, a gauge of the outlook for the next three to six months, climbed 0.9% last month, the most since July, after rising 0.7% in September, the New York-based group said today. The median forecast of 49 economists surveyed by Bloomberg called for an advance of 0.6%. (Bloomberg)

Europe

Euro-Area Growth At Risk As Factories, Services Weaken. The euro-area economy risks a renewed slowdown. A Purchasing Managers Index for factories and services activity unexpectedly fell to 51.4 in November, the lowest in 16 months, from 52.1 in October, London-based Markit Economics said today. A reading above 50 indicates expansion. Economists surveyed by Bloomberg News had predicted that the euro-area PMI would increase to 52.3. In the euro region, a gauge of manufacturing fell to 50.4 in November from 50.6 in October, today’s report showed, while a services index declined to 51.3 from 52.3. German manufacturing and services expanded at the slowest pace in 16 months, signaling that growth in Europe’s largest economy is poised to remain sluggish. French manufacturing continued shrinking as demand fell, casting doubt on the solidity of the country’s economic rebound seen in the third quarter. (Bloomberg)

Euro Zone Consumer Confidence Falls In November. Euro zone consumer confidence defied market expectations of improvement and fell in November, a flash estimate from the European Commission showed on Thursday. The Commission said that consumer confidence in the 18 countries using the euro fell to -11.6 this month from -11.1 in October. Economists polled by Reuters had expected an improvement to -10.7. (Reuters)

French Business Slump Eases Slightly In November But New Business Drying Up: PMI. France's private sector contraction has eased slightly this month, a survey showed on Thursday, but new business has dropped at the fastest rate in over a year, suggesting conditions may worsen again next month. Markit's preliminary composite purchasing managers' index, covering the services and manufacturing sectors that account for more than two-thirds of the economy, stood at 48.4 in November, just up from October's eight-month low of 48.2. But the manufacturing index fell to a three-month low of 47.6, well below a Reuters consensus forecast for 48.8, after dropping to 48.5 last month. (Reuters)

UK Retail Sales Rose By 0.8% In October As Prices Fell. UK retail sales rose by 0.8% October compared with September, according to official figures. There was growth in all sectors, except non-store retailing, the Office for National Statistics said. Compared with October 2013, sales were up 4.3%, the ONS said. Over the year, average prices fell by 1.5%, the largest decline since December 2002, helped by a fall in the price of petrol. Petrol and diesel prices were at their lowest level since the end of 2010, the ONS said. (BBC)

Currencies

Dollar Falls From Seven-Year High Against Yen. The dollar surrendered the gains against the yen during the Asian session Thursday, after gaining more than 170 basis points in less than 32 hours and surpassing multiple seven-year highs. The greenback traded at ¥118.02, after rising as high as ¥118.97, as it continued to revisit the highs from the summer of 2007, when investors scrambled to the perceived safety of the yen as U.S. credit markets seized up. Volatility broadly characterized G-10 currency trading Thursday, as the euro also swung wildly, plummeting to $1.2505 after the Eurozone flash PMI for November fell to a 16-month low. It soon recovered to $1.2563, slightly above its Wednesday afternoon price of $1.2545. Elsewhere, the pound fell to a 14-month low against the dollar after the U.K. retail sales price deflator fell by 1.5% from a year ago in October, pressured by the falling price of oil, an indication that inflation remains weak. The U.S. Dollar Index , a measure of the greenback’s strength against a basket of six currencies, was flat at 87.6200. (Market Watch)

Commodities

Oil Up After 3-Day Loss On Strong U.S. Data, OPEC Cut Speculation. Oil closed higher on Thursday, snapping a threeday loss, as strong U.S. economic data bolstered crude markets but focus remained on whether OPEC will cut output to end a five-month long selloff when it meets next week. Benchmark Brent oil settled up $1.23 at $79.33 a barrel, after a session high at $79.46. U.S. crude finished up $1 at $75.58 after an intraday peak of $75.76. (Reuters)

Gold Rises As Price Drop Tempts Physical Buyers. Gold rose on Thursday on data showing rising U.S. inflation, and after the previous day's 1-percent drop triggered renewed physical interest by price-sensitive Asian buyers. Spot gold was up 0.7% at $1,191.44 an ounce by 1:55 p.m. EST (1855 GMT), while U.S. gold futures for December delivery settled down $3 an ounce at $1,190.90. Platinum was up 1.7% at $1,202.50 an ounce, while palladium climbed 1% to $768 an ounce. Silver was up 0.3% at $16.15 an ounce. (Reuters)