Financial markets recovered modestly as driven by stronger-than-expected US data and the successful Spanish bond auction. Wall Street rose with DJIA and S&P 500 gaining +0.38% and +0.32% respectively. In the commodity sector, Brent crude for December delivery closed almost flat while the equivalent WTI crude contract dropped more than -1% amid demand concerns after OPEC's raise in output ceiling.

US economic data delivered pleasant surprises. Initial jobless claims surprisingly declined to 366K in the week ended December 10 from 381K a week ago. The market had anticipated a rise to 390K. The 4-week moving average fell -7K to 388K, the lowest level since July 12. Moreover, continuing claims climbed only +4K to 3603K for the latest week. Manufacturing sector in Philadelphia and New York also unexpectedly improved. The Philly Fed Index rose to 10.3 in December from 3.6 in November while the Empire State Manufacturing Index improved to 9.5 from 0.61.

In the Eurozone, sovereign debt problems in the region persisted but the result of the Spanish bond auction eased investors' worries for the time being. Spain sold a combined 6.03B euro of debt due in January 2016, April 2020 and April 2021, exceeding the original target of 3.5B euro. Bonds due in 2016 were sold at an average yield of 4.023%, less than 5.276% offered on December 1. Bonds due in 2020 were sold at 5.239%, compared with 5.006% in September while bonds due in April 2021 bond were sold at 5.545%, less than the 5.696% on the secondary market before the auction.

Concerning the dataflow today, the US CPI probably climbed +0.1% m/m in November after slipping -0.1% in the prior month. On annual basis, inflation probably gained another +3.5% in November. Core CPI is expected to have gained +0.1% and +2.1% respectively on monthly and annual basis in November. In the Eurozone, trade surplus probably narrowed to 1.3B euro in October from 2.1B euro in September.