As you can see from the accompanying chart, markets ended the week mainly with gains.
In the Eurozone, GDP for Q3 contracted 0.1% – the first fall of its kind since Q4 of 2022. Breaking down the official figure, household consumption expenditure provided gains to GDP, increasing by 0.3%, as did Government final consumption expenditure, which also rose by 0.3%. With regards to factors pulling the region’s GDP down, both data and commentary from economists pointed to a notable decline in inventories in the quarter and weaker economic sentiment. In line with comments recently expressed by ECB President, Christine Lagarde, market spectators foresee a consequential slowing of spending growth in the fourth quarter before its growth in general then ticks up again in 2024.
Heavily anticipated US labour market data on Friday revealed that the unemployment rate fell to 3.7% in November 2023 down from 3.9% in the previous month. This marked the lowest rate since July and came in below expectations. In addition, data showed the economy added 199,000 jobs in November 2023, surpassing the 150,000 added in October.