Japan dodge recession due to GDP

Japan’s final GDP (Gross Domestic Product) figures were released yesterday, showing an expansion in the economy for the third quarter of this year, thus the recession from previous estimates being avoided. The major factors for that helped to achieve this result were the stronger investments and the slowing pace of the decrease in inventories. The GDP went up to 0.3% from a revised -0.2%, although markets looked forward to only a 0.1% increase. Annually, the growth is set at 1.0% for the third quarter, estimations being of a 0.8% development in the other side. The efforts of Japan’s strict policies are paying off.

Tuesday’s reports over China’s economy show a $54.10 billion contraction in November’s trade surplus, coming down from October’s $61.64 billion record. Imports also went own the 13th month in a row, registering an 8.7% decline against a 12.6% forecasted figure and an 18.8% drop in October. Exports exceeded the grim forecasts, coming out -6.8% from 2014’s November, declining the 5th consecutive month.

In the UK, the manufacturing service contracted 0.1% YoY (year-on-year) in October, the MoM (month-on-month) figure also coming under par at -0.4%. The new orders number is growing at its slowest pace since 2009. BoE’s (Bank of England) decisions on Thursday over the interest rate will be thoroughly impacted by the results.
The EUR/USD major went up a few pips yesterday, lingering around the 1.0900 handle. The dollar’s calm across the board ahead of Fed’s meeting is what drove the small hike, investors waiting in suspense if the decision will be the one foreseen.

Black gold prices surprised investors yesterday in the New York sessions, managing to reverse the downward trend and register a small gain. The WTI (West Texas Intermediate) barrel changed its course after hitting a staggering 6-year low at $36.64, closing the day just above the $38.00 threshold with a 1.1% gain. The Brent barrel also went up yesterday, closing the session around $41.00 / barrel. We should have in mind that oil has dropped substantially last week’s Friday and this week’s Monday due to OPEC’s (Organization of the Petroleum Exporting Countries) fail to agree upon new output limits. After releasing their initial statement and declaring that the oil production barriers went up, OPEC has decided to review the release and met on Friday once again. Discussions failed to come to an end as oil prices are down more than 60% since the mid-2014.