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The US employment report showed strong improvement, reducing a key obstacle to improving confidence.

November data show signs that the expected moderation in Asian manufacturing growth has materialized and that US and euro area growth is poised to continue to firm.

The BOJ’s announcement of an expansion of QE this week comes too late to prevent the slowdown in growth expect in H1 10

The ECB has continued to portray a more hawkish stance than the Fed, though some still expect the Fed to tighten first.

Developed Economies

US: Getting better

The November employment report showed continued improvement, with a much smaller decline in payrolls and decline in the unemployment rate.

Euro area: Defining an exit strategy, as recovery unfolds

PMIs show further improvement, led by manufacturing

UK: Activity recovering, but lending remains weak

November’s PMIs provided another sign that the economy should resume growth in Q4, broadly.

Japan: Policy actions and prospects

The markets have drawn some comfort from the initial “team spirit” of Japanese fiscal and monetary authorities, but the economy itself may require more “team work.”