Morning note, data, events, bonds and earnings 3rd December 2012

Good morning,

Some strong volumes going through on Friday, as November comes to an end and window dressing helped US markets close flat on the day.

Press over the weekend was heavily focused again on macro data, with headlines targeting the US debt and spending expirations, and Europe with Merkel looking at Greek debt write offs.

In Asia, headlines focused on a strong manufacturing number, which came in at 50.6 indicating growth, however, it missed estimates of 50.8. There are once again, talks of China GDP estimates under the new leadership, with the survey indicating towards 7.5% growth. With the RMB so strong, exports will continue to ease, causing increasing fears that China will struggle to hit existing estimates. As rising inflation and "real" property prices and transactions continue to stagnate, investors fear that domestic demand will not be able to take up the slack of falling exports.

We are already seeing the high end market being hit, with falling sales of luxury consumer discretionary goods, such as automobiles and watches.

Markets.Expect markets in Asia today to start giving back some of there gains from Friday on the open, but with the Euro still strong at 1.30, we should see equity markets remain buoyant, trending firmer through the session.
Its hard to see the Euro trending much firmer given the overhang in the US and Greek/Spanish/Italian.Portuguese debt, however, I would not be short the Euro at these levels. Major supports are now 1.27, 1.2840 and 1.2980.

Data.08:00 S.Korea HSBC Manufacturing PMI
80:00 UK Hometrack housing
08:30 AU retail sales, invnetories
09:00 China non-manufacturing PMI
09:45 China HSBC manufacturing PMI
12:00 Thailand CPI
12:00 Indonesian trade balance/inflation,CPI
13:00 Japan vehicle sales
13:30 Australia RBA commodity price
16:00 Turkey CPI, PPI
16:15 Spain PMI - number expected very weak, possible upside surprise
16:45 - 55: Italy, France Germany PMI
17:00 EU PMI
17:00 Greek PMI
17:30 UK PMI
23:00 US ISM manufacturing/prices paid/construction spending

Events.08:10 BoJ deputy Gov Nishimura speaks at Panel
12:00 BoJ Shirakawa and ECB Noyer speak at Europlace Forum
17:30 UK's BoE publishes quarterly FLS lending data
US financial stability oversight council meet in Washington
EU area finance ministers meet in Brussels

Bonds.10:30 S.Korea 3 year auction
11:00 Thai 1,3,6,12 month auction
18:00 Netherlands 3,6 month auction
18:30 German 3 month auction
22:00 France 3,6 month auction

Earnings.Elektra(SW), TUI travel(GB), China Sandi(HK), Ito(JP0, Pigeon(JP), Cerebos Pac(SG)

Stoddart