Retail sales in the Euro Area went up 0.1% month-over-month in November 2024, less than market expectations of a 0.4% increase and after a 0.3% fall in October. Sales rebounded for auto fuel (0.8% vs -0.4%) and continued to increase for food, drinks and tobacco (0.1% vs 0.2%). On the other hand, non-food products fell 0.6%, the same as in October. Among the largest economies, retail sales increased 0.3% in France, but fell in Germany (-0.6%) and Spain (-0.6%). Year-on-year, retail sales in the Eurozone increased 1.2%, following a 2.1% rise in October.

The STOXX 50 was down 0.5% and the STOXX 600 declined 0.4% on Thursday, extending losses from the previous session, as persistently elevated bond yields continued to weigh on investor sentiment. Also, traders worry about the outlook for inflation and the potential impact of Trump's additional trade tariffs. Investors were also digesting minutes from the last FOMC meeting that showed the Fed's concerns about inflation and signalled a slowdown in the pace of rate cuts. Retail and bank stocks led the losses, namely Societe Generale (-1.8%), BNP Paribas (-1.7%) and UniCredit (-0.8%). The auto sector was also under pressure, including BMW (-1.4%), Mercedes-Benz (-1.2%) and VW (-1.2%). On the other hand, financial services and health care managed to stay in the green, including Novo Nordisk (0.8%).

Exports from Taiwan grew by 9.2% from a year earlier to a four-month high of USD 43.6 billion in December 2024, easily beating market expectations of 6.5% rise, although slowing from a 9.7% gain in the previous month. The growth was primarily driven by increased sales of all the leading export commodities, namely; parts of electronic product (8.6%), information, communication and audio-video products (16%), base metals and articles of base metal (3.4%), machinery (1.3%), and plastic and rubber and articles thereof (3.4%). Among major trading partners, exports soared to ASEAN countries (27.8%), South Korea (21.1%), and the USA (16%). However, exports dropped to Japan (-20.1%) and Europe (-15.7%). Considering the whole period of 2024, exports were registered at USD 475.1 billion, a 9.9% higher compared to the previous year.

The yield on the UK 10-year gilt surged to above 4.8%, the highest since August 2008, while the yield on 30-year gilts climbed to 5.47%, its highest since 1998. This rise reflects a broader increase in bond yields fuelled by concerns over Trump’s policies and a hawkish outlook from the Fed. The pressure in the UK bond market has been further amplified by mounting investor concerns over the nation’s debt levels and the government's ability to restore public finances while implementing its budget plans. In late October, the Chancellor of the Exchequer unveiled a new budget that included £142 billion in borrowing and a £74 billion increase in annual spending, raising alarms about fiscal sustainability. Additionally, fears over the inflation outlook weighed on sentiment, as CPI inflation, and wage growth showed upward trends. Traders are now anticipating only two quarter-point rate reductions by the BoE this year, compared to over three predicted a month ago.

Exports from Germany grew by 2.1% month-over-month to EUR 127.3 billion in November 2024, slightly higher than market estimates of a 2.0% gain, recovering from an upwardly revised 2.9% drop in the previous month. It was the first increase in outbound shipments in three months, with sales to third countries rising by 6.9%, boosted by higher sales to the US (14.5%), Russia (21.0%), and the UK (7.2%), but declining to China (-4.2%). By contrast, sales to the EU shrank by 1.7%, namely to the Euro area (-2.1%) and the non-Euro area (-0.7%). For the first eleven months of the year, exports dropped 1.4% from the same period in 2023 to EUR 1.4 trillion.

Industrial production in Germany increased 1.5% month-over-month in November 2024, following an upwardly revised 0.4% fall in October and much better than market forecasts of a 0.5% gain. Gains were seen across various sectors, including energy production (5.6%), construction (2.1%) and the manufacture of aircraft, ships, trains, military vehicles (11.4%). Production went up for capital goods (1.4%), consumer goods (0.9%) and intermediate goods (0.5%). Notably, production in energy-intensive industrial branches grew by 1.5%. However, on a less volatile three-month-on-three-month basis, production fell by 1.1% in September-November 2024 compared to the previous three months. Year-on-year, industrial production declined 2.8%, extending the 4.2% drop in October.