103047 Euro Area industrial production falls more than expected Financial Markets Global equities and oil prices advanced on Wednesday as better-than-expected Chinese trade data and stabilizing money and currency markets in Shanghai and Hong Kong bolstered investors’ sentiment. The MSCI Asia-Pacific Index soared by the most in 4 weeks, led by gains in Japan and Hong Kong, while the Europe Stoxx 600 index was trading 1.4 percent higher in afternoon session. U.S. equities opened higher as well with the S&P 500 index gaining nearly 1 percent. Brent crude, the global benchmark, was up almost 3 percent to $31.76 a barrel. The Mexican government said it plans to issue its first dollar-denominated bond since January 2015, encouraged by a robust response to Chile’s dollar offering a day earlier. On Tuesday, Chile became the first Latin American issuer to tap the dollar market in what has been a quiet start to 2016 for issuance from the region. Mexico set initial price of U.S. Treasuries plus 230 basis points for a 10-year dollar bond. Advanced Markets Signaling an expansion of home-buying in the 2016, U.S. mortgage applications were up 18 percent (sa) in the week that ended on January 8th over the previous week, and 19 percent higher than the same week a year earlier. The average interest rate for 30-year fixed mortgages eased by 8 basis points to 4.12 percent. Euro Area industrial production declined by 0.7 percent in November (m/m), more than expected. Still, the purchasing managers’ indices for December suggest that manufacturing and services ended the year in expansionary territory. The seasonally adjusted unemployment rate in South Korea was unchanged at 3.4 percent in December, slightly lower than the 3.5 percent recorded in the same month a year earlier, and broadly consistent with expectations. Employment in wholesale and retail trade, accommodation and food expanded the most. Emerging and Frontier Economies East Asia and Pacific China’s trade surplus increased to US$60.1 billion in December 2015 from US$49.6 billion reported a year earlier and beating market consensus. Exports declined by 1.4 percent (y/y), the sixth straight month of decline and the smallest drop since June. Imports decreased by 7.6 percent, following a 8.7 percent decline in November. It is the 13th straight month of contraction. Latin America and the Caribbean Brazilian retail sales gained 1.5 percent (m/m) in November, following a downwardly revised 0.5 percent increase in October and beating market expectations of a 0.5 percent fall. It is the largest increase since November 2014, boosted by jumps in sales of furniture and household appliances, and in sales of articles 1 for personal and domestic use ahead of Christmas. Year-on-year, retail sales shrank 7.8 percent, the eighth consecutive decline. Sub-Saharan Africa Jumping the most since July 2015, Ghana’s consumer prices increased 17.7 percent (y/y) in December, following a 17.6 percent rise in November. The main drivers came from the non-food group, partially fueled by utility and transport price increases. January 13, 2016 The Global Daily is an informal briefing on global economic and financial developments compiled by the World Bank’s Development Economics Prospects Group. Recent issues, together with analysis of a variety of macroeconomic topics, covered by the Group, may be found at: http://www.worldbank.org/prospects. The views expressed in the Global Daily do not necessarily reflect those of The World Bank Group, its Board of Executive Directors, or the governments they represent. Feedback and requests to be added to or dropped from the distribution list may be sent to: Derek Chen (dchen2@worldbank.org). 2