In US economic data, retail sales fell by 1.2% in December (forecast +0.2%) - the biggest fall in nine years. Excluding autos, sales fell by 1.8%. Sales were still up 2.3% over the year. Producer prices fell by 0.1% in January (forecast +0.1%) with annual growth down from 2.5% to 2%. Excluding food and energy, prices rose by 0.3% (forecast +0.2%). New claims for unemployment insurance rose by 4,000 to 239,000 in the latest week (forecast 225,000).
In US economic data, retail sales fell by 1.2% in December (forecast +0.2%) - the biggest fall in nine years. Excluding autos, sales fell by 1.8%. Sales were still up 2.3% over the year. Producer prices fell by 0.1% in January (forecast +0.1%) with annual growth down from 2.5% to 2%. Excluding food and energy, prices rose by 0.3% (forecast +0.2%). New claims for unemployment insurance rose by 4,000 to 239,000 in the latest week (forecast 225,000).
* European sharemarkets generally eased on Thursday with sentiment dented by the weak US retail sales data. But shares in Airbus rose 2.7% in response to its profit result . Shares in Nestle were up 1.6% to record highs after giving positive sales guidance. Data showed that Germany avoided recession with the economy flat in the December quarter, down from the 0.2% gain for the broader euro zone economy. The pan-European STOXX600 index fell by 0.3%. The German Dax index lost 0.7% but the UK FTSE edged 0.1% higher. In London trade, shares of Rio Tinto fell by 0.2% while shares of BHP were generally flat
* US sharemarkets rebounded from lows early in the session. Weak retail sales data weighed on the shares of retailers. But there was ongoing optimism about US-China trade talks. Reports suggest that President Trump can extend the March 1 deadline for a trade deal. Without a deal there would be a sharp lift in tariffs applied on Chinese goods. With an hour of trade to go the Dow Jones index was lower by 30 points or 0.1% after earlier being down 235 points. The S&P500 index was flat. And the Nasdaq index was higher by 23 points or 0.3%.
* US treasuries were firmer on Thursday (yields lower) in response to weak retail sales data. US 2-year yields fell by 4 points to 2.50% and US 10-year yields fell by 5 points to 2.655%.
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