Wall Street futures trading is pointing to a positive start to the first full trading week of 2004.
Auto makers are scheduled to release December sales figures today. And the U.S. the Commerce Department will release its reading on November construction spending at 10:00 ET. Economists are predicting a 0.5% increase over October.
Meanwhile, Statistics Canada has released the latest numbers on manufacturers prices. They continued to weaken in November — down 0.4% from October. Compared with November 2002, prices fell 4%, largely as a result of the continuing effect of a strong Canadian dollar against the U.S. dollar. Without the dollar’s influence, the Industrial Product Price Index (IPPI) would have risen 1% rather than falling 4.0% from a year ago.
On a year-over-year basis, November represents the eighth consecutive month of decline in the IPPI. The petroleum and coal products group continued to have a much smaller influence on the year-over-year change in the IPPI with a decrease of 3.7%. If petroleum and coal product prices had been excluded, the IPPI would still have declined 4% on a year-over-year basis.
Economists say this report shows the economy is still in recovery mode, with no threat of inflation. It’s unlikely the Bank of Canada will change rates when it meets again in a few weeks.
In Asia, Tokyo stocks started 2004 on a high note as the yen boosted shares of exporters. The Nikkei rose 148.53 points, or 1.4%, to close at 10,825.17 points after a half-day trading session. Full-day trading in Tokyo resumes Tuesday.
In Hong Kong, stocks closed at a 30-month high, boosted by gains in the real-estate sector. The Hang Seng Index rose 203.85 points, or 1.6%, to 13,005.33. Investors were showing optimism about the economic prospects for Hong Kong in 2004.
At midday in Europe London’s FTSE-100 Share Index slipped 0.90 point to 4,509.30, while in Paris the CAC-40 Index slid 6.18 points, or 0.2%, to 3,590.62. Frankfurt’s Xetra Dax Index is up 9.31 points, or 0.2%, to 4,027.81.