WHAT TO WATCH: Retail sales in the U.S. probably climbed in November on rebounding demand for automobiles, 8:30 a.m. U.S. producer prices probably fell 0.5 percent after a 0.2 percent drop the prior month, 8:30 a.m. European finance ministers agreed to put the ECB in charge of all euro-area lenders. Chile will probably leave its key interest rate unchanged at 5 percent for the 11th straight month, 4 p.m. IMF Managing Director Christine Lagarde speaks in Chile, 8:30 a.m. The Swiss central bank pledged to uphold its 15-month defense of the franc. The Philippines kept its benchmark borrowing rate at 3.5 percent.
ECONOMICS: U.S. jobless claims, 8:30 a.m. Bloomberg U.S. weekly consumer comfort index, 9:45 a.m. U.S. business inventories may have grown 0.4 percent in October, compared with a 0.7 percent gain a month prior, 10 a.m. Spain sold 2.02 billion euros ($2.64 billion) of debt as the Treasury seeks a funding buffer for next year.
GOVERNMENT: Euro-region finance ministers are set to approve a 34.4 billion-euro ($45 billion) loan disbursement to Greece after German Chancellor Angela Merkel endorsed the country’s debt-reduction efforts.
MARKETS: The yen dropped to a more than eight-month low. South Korea’s won strengthened to a 15-month high. Commodities declined. Treasury 30-year yields climbed to the highest level in five weeks. German bunds erased a decline. U.S. stock futures declined, indicating the S&P 500 Index will retreat from a seven-week high.
Also in today’s issue:
Joseph Brusuelas takes a look at the Fed’s adoption of the ‘Evans rule,’ which links stimulus to specific jobs and inflation targets.
Bloomberg Rankings lists the top forecasters of this morning’s advance retail sales report.
Darius Kowalczyk of Credit Agricole says China’s growth momentum may peak soon.
Niraj Shah takes a closer look at the economy of London, which may be decoupling from the rest of the U.K.
Ira Jersey talks to Tom Keene about negative real bond yields.