Week of December 4, 2011 thru December 10, 2011

China Export Growth Slows But Trade Resilient To Euro Crisis

BEIJING (MNI) - Chinese export growth fell for a third straight month in November as the European debt crisis continued to eat at global demand. But the government customs office nonetheless reported a surprisingly resilient set of monthly data, including record imports and a rebound in the growth of shipments to the United States.

Exports overall rose 13.8% y/y in November, down from the 15.9% growth recorded in October but better than the expected 12.0%, according to the median of a survey compiled by Market News International.

Imports also surprised on the upside, rising 22.1% y/y in the month versus the expected 20%.

China Economic Data Calendar

All figures year-over-year percent changes unless otherwise specified.

Date Time For Event Previous Local/GMT


10-15 Dec -- / -- Nov Money Supply (M2) (% ytd y/y) +12.9 10-15 Dec -- / -- Nov New Loans (yuan bln mth, trln ytd) +586.8/+6.27 10-15 Dec -- / -- Nov Actual FDI ($ bln mth, % ytd y/y) +8.33/+15.9 14 Dec 1000/0200 Oct Conf Brd China Leading Index 160.2 14 Dec 1000/0200 Oct Conf Brd China Coincident Index 207.5 23 Dec 0935/0135 Dec MNI China Business Sentiment Flash Survey+55.52 26 Dec 1030/0230 Dec Flash Purchasing Manager's Index (HSBC) +48.0 30 Dec 0935/0135 Dec MNI China Business S

Sr US Off'l: Sees European Progress on Firewall; More Needed

WASHINGTON (MNI) - The United States is putting a somewhat qualified positive spin on the European summit, saying progress has been made, though the question remains whether the markets are going to find the scale of resources being made available to be enough.

TheFXSpot: EU Summit In Rear View, Mkt Eyes EZ Auctions, Fed

NEW YORK, Dec 9 (MNI) - With the EU Heads of State Summit in the rear view mirror, market players Friday were shifting their focus to events unfolding next week that might drive risk sentiment.

FXWRAP: Euro Slips Slightly As EU Summit Outcome Underwhelms

NEW YORK, Dec 9 (MNI) - The dollar racked up slight gains vs. the euro while easing slightly vs. the yen in a session marked by poor liquidity, light flows, and a market slightly underwhelmed by the outcome of the E.U. Summit.

Euro-dollar was changing hands at $1.3370 in quiet afternoon dealings Friday, the euro around the middle of the day's 1.3320/1.3418 range of the U.S. session after beginning the day near the high.

Dollar-yen meantime was holding at Y77.51 in afternoon dealings as the greenback ebbed to the lower end of its Y77.51/77.72 range seen during U.S. hours.

Afternoon dealings were at a negligible pace Friday as the approach of the Christmas break drove many to the sidelines as liquidity dwindled ahead of the weekend.

US Credit Default Swaps: Ring of Cautious Optimism

NEW YORK, Dec 9 (MNI) - The benchmark index on investment-grade credit default swaps, or IG.17, improved Friday on the day, amid relatively positive sentiment, albeit with a tone of caution, in the U.S. credit market following the outcome from the two-day EU heads of state summit.

Talk From The Trenches: Financial Markets End On Better Note

NEW YORK, Dec 9 (MNI) - The Treasury market was mostly lower on Friday on some relief on the European front and as the market prepared for two straight weeks of supply.

US Hill Still Seeks Way To Extend Payroll Tax Cut,UI Benefits

--Retransmitting 13:34 ET Story, Correcting Typo
--Senate Democrats, Republicans Block Rival Plans
--House GOP Calls On Obama To 'Accept' Their End of Year Tax Package
--House, Senate Appropriators Try To Craft $900 Billion FY'12 Package

WASHINGTON (MNI) - Another week of testy tactical skirmishing on Capitol Hill has left Congress no closer to an agreement on extending the payroll tax cut, renewing uninsurance benefits, or passing other important end-of-the-year items.

Congressional leaders have said they hope to adjourn for the year by next Friday, but the continuing deadlock on the payroll tax cut extension and other items could this target adjournment date back for at least a few days and perhaps up to a week.

EU Juncker: 17-Plus Countries Entitled To Use EU Institutions

BRUSSELS (MNI) - The Eurozone member states that have circumvented the need to change the Maastricht Treaty by entering into a fiscal governance covenant among themselves and with some of the non-euro area members of the European Union, have the right to use the institutions of the EU in this context, Luxembourg Prime Minister Jean-Claude Juncker told Market News Inte

US OUTLOOK: Trade Data Prompts Upward Revisions of Q4 GDP

--Analysts Now Peg GDP Tracking Growth Between 3% and 4%

CHICAGO (MNI ) - Many analysts Friday raised their estimates for U.S. fourth-quarter gross domestic product, citing factors that contributed to the narrowing of the U.S. trade gap in October.

Barclays Capital said its estimate for Q4 real growth is now tracking 3.5%, Goldman Sachs raised its Q4 tracking estimate by 0.5 point to 3.4% and Nomura lifted its estimate to 3.9% after the Commerce Department trade deficit report.

"The mix of underlying data that resulted in a narrowing of the trade gap in October has led us to upwardly revise our tracking estimate for Q4 real GDP growth to 3.9% from 3.7% previously," Nomura Global Economics researchers said in written commentary.