Australian employers added the most jobs in more than two years last month as the central bank’s plan to spur growth with record-low interest rates appears to be working. The number of people employed rose by 42,700, the biggest gain since March 2012 and almost three times what markets had expected. The unemployment rate climbed to 6.3 percent, a 12-year high, as more people entered the labor force seeking work.
The Australian Dollar reversed losses overnight against Sterling following the latest figures.
In the U.K. a house-price index showed price growth slowed for a sixth month in November! RICS said its house-price gauge fell to 13, the lowest since May 2013, from 20 in October. An index for London dropped to minus 40, the least since 2010, from minus 33. The stamp-duty reform could reverse the softer trend in buyer enquiries that has been visible in recent months.
For Europe, today’s key event is the announcement of the size of the ECBs TLTROS (Targeted longer-term refinancing operations). At his press conference following the latest policy meeting, ECB president Draghi stated they would review policy early next year after they have more indications of the impact of the measures announced so far. It appears he has more work to do to build a consensus on the council for further measures, in particular, sovereign QE.
Later this afternoon we have the US retail sales figures for November that will provide an insight on the strength of consumer spending moving into the holiday period. Despite evidence that US economic growth is accelerating, retail sales have been relatively disappointing in the second half of the year. Also published at the same time, weekly jobless claims will provide an update on the labour market in early December following the very strong November payrolls report.