Fundamental Analysis

Weekly RoundUp Report 21/11/2017

• November 21, 2017

EVENT RECAP: WEEK ENDING 17^th NOVEMBER 2017   North America   U.S. Core Retail Sales data fell short of expectations in October growing by 0.1% compared with an expected rise of 0.2%. However, the rise indicates that there is healthy consumer demand going into the holiday season. Price inflation also met expectations for a 0.1% rise. Crude Oil inventories rose again last week by 1.9 million barrels compared with an expected draw-down of 2.1 million barrels, putting pressure on oil prices.     Asia Pacific   China's Industrial Production, a significant component of economic growth,  slowed in October to 6.2% growth, highlighting a deceleration in the pace of expansion. Fixed Asset Investment came in as forecast at 7.3%. Japan Prelim GDP data suggested the economy registered the 7th consecutive quarter of growth representing the longest streak of growth in recent times, however, the pace of growth in the third quarter slowed compared to previous quarters.   United Kingdom   Headline inflation remains at the upper bound for the U.K. economy registering 3% growth in prices for October. Despite the first rate hike in 10 years, consumer prices continue to surge, as wage inflation starts to grow. Rising food prices have impacted retail sales, however, resulting in the first year-on-year decline in sales in 4 years.   Europe   Prospects for the Eurozone appear to be bright according to Mario Draghi's speech at The Frankfurt European Banking Congress. Draghi highlighted the Eurozone had seen 18 consecutive quarters of growth indicating that 'confidence' was 'robust'.