• Chicago Fed Index Hits New Low in December

The Chicago Fed National Activity Index plummeted in November, coming in at -2.47 from a previous reading of -1.27, the Federal Reserve Bank of Chicago reported. All four categories contributed negative results to the November index. The less-volatile three-month moving average decreased slightly to -2.49 from the previous report's reading of -2.40. According to the report, November's three-month average indicates that inflation pressures have receded.

• CBOC Poll Shows Canadian Consumer Confidence Worsening

A poll from the Conference Board of Canada shows consumer confidence fell to 67.7 in December, its lowest level since the recession of 1981-82. More than twice as many respondents (26.5%) to a CBOC poll said they are worse off financially compared with six months ago than the number who said they are better off (12.5%). The survey found that 21.4% of consumers expect to be better off financially six months from now, down 0.5 points from November. Meanwhile, 17.8% of people surveyed expect to be worse off six months from now.

• Canadian Average Weekly Earnings Creep Higher

The average weekly earnings of payroll employees in Canada edged above $800 in October as workers in eight of the 10 provinces were paid more than in the previous month, Statistics Canada reported. Average earnings rose 0.3% from September (+3% from a year ago) to $801.24. Workers in accommodation and food services saw their wages rise 1.5% on a monthly basis and 8.8% from a year ago to $353.77. Mining and oil and gas extraction employees continued to command the highest average weekly wages at $1,482.58, representing a 0.5% decrease from September, but a 4.3% increase from a year ago.

• Other Releases

An auction of $38 billion in two-year Treasury notes drew a high yield of 0.922% allotted to 97.81% of bidders. The high yield was above the 'when issued' yield of 0.918% prior to the announcement. The median discount rate was 0.834% and the low yield was 0.750%. The bid-to-cover ratio was 2.13, with non-competitives taking $343,445,600.

Business confidence hit a new all-time low in December, according to the National Bank of Belgium's business confidence indicator, which sank to -31.3 in December from the -23.7 level seen in November. Economists had expected a fall to -26.0. The data point is a predictor for the German Ifo index, which fell to 82.6 in December from 85.8 previously.

Marking the fifth move in three months, the People's Bank of China (PBOC) cut its one-year deposit rate by 27 bps to 5.31%, its lending rate by 27 bps to 2.25% and the reserve ratio by 50 bps to 15.50% on Monday in an unscheduled meeting. According to officials, the cuts will take effect on Tuesday, except for the reserve ratio, which will come into effect on Thursday.

Euro zone industrial new orders fell further than expected in October, with Eurostat reporting a 4.7% month-over-month contraction compared to expectations for a 4.0% decline, and following September's 3.9% fall, which was revised down to a 5.4% decline. Annual orders fell 15.1% on the year despite expectations for a 9.8% decline. September's 1.1% drop was revised down to a contraction of 1.9%.

On Saturday, Canada's federal government and the government of Ontario announced a $4 billion loan package for General Motors and Chrysler, which will be provided through Export Development Canada. The loan package requires all parts of the industry to help reduce structural costs and ensure a viable auto sector in Canada.

Looking ahead to tomorrow, markets will receive new and existing U.S. home sales for November, as well as the final prints for U.S. Q3 GDP and the Reuters and University of Michigan consumer confidence survey for December.

By Stephen Huebl, This email address is being protected from spam bots, you need Javascript enabled to view it , with contributions from Steve Stecyk, This email address is being protected from spam bots, you need Javascript enabled to view it , Erik Kevin Franco, This email address is being protected from spam bots, you need Javascript enabled to view it , Geoff Matthews, This email address is being protected from spam bots, you need Javascript enabled to view it and Todd Wailoo, This email address is being protected from spam bots, you need Javascript enabled to view it , edited by Sarah Sussman, This email address is being protected from spam bots, you need Javascript enabled to view it

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