US job cuts slowing down, Eurozone Q3 GDP rises 0.4%

In the US, employers cut 11,000 jobs in November, which was fewer than expected and the smallest decline since the start of the recession in December 2007. The Labour Department said the unemployment rate last month fell to 10% from 10.2% in October.

The Institute of Supply Management Index for the services sector dropped to a reading of 48.7 for November from 50.6 the previous month. However, the orders component was above the 50 level, which will help cushion the impact.

Meanwhile, the Federal Reserve's Beige Book said most districts reported consumer spending slightly higher. In the housing market, there was a further 3.7% increase in pending home sales for October, following a revised 6% increase the previous month. In contrast, the manufacturing Purchasing Managers' Index (PMI) weakened to a reading of 53.6 for November from 55.7 previously.

The Eurozone's third-quarter GDP results confirmed the initial reading that the economies of the 16 countries that use the euro expanded by 0.4% during the period. This was driven by government stimulus, external demand and temporary inventory effects.

Meanwhile, the European Central Bank said the long-term 12-month liquidity tenders would cease in December while shorter-term programmes would continue into 2010. As expected, interest rates were left unchanged at 1%.

In the UK, the latest manufacturing PMI report was weaker than expected with a decline to a reading of 51.8 for November from a revised reading of 53.4 a month earlier. The construction PMI index also remained below the 50 level for November at 47.0. Meanwhile, the services-sector index weakened to 56.6 from 57.1 the previous month.

British house prices rose 0.5% in November, which, according to mortgage lender Nationwide, suggests that the rapid initial rebound from its five year-low in February is now slowing.

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