Dear Reader,

Today's overview of economic news and market action:

• • Investors kept their powder dry during yesterday’s European session …
  • Overnight, the Fed left monetary policy unchanged ….
  • However, the market had a dovish reaction to changes in Fed remarks and projections …
  • Futures contracts are now pricing in 150bps of rate cuts in the US next year …
  • The dollar was on the defensive as a result, with EUR/USD up at $1.09 …
  • GBP/USD is operating near the midpoint of $1.26-1.27 …
  • EUR/GBP is just above the 86p handle …
  • Today, the monetary policy spotlight turns to the ECB and the BoE.

Supply maintains momentum, prices recover after weak start

The main focus of the Irish residential property market over the last number of years has been supply, or more specifically the lack of adequate supply.

World economy has lost momentum during 2023. Even the US economy may be starting to slow after a strong performance year-to-date. Subdued growth expected again in 2024.

Latest survey data from the AIB Ireland Manufacturing PMI® highlighted a stabilisation in overall business conditions, following modest downturns in September and October.

Service sector expansion accelerates in November

Rates of expansion in total activity and new business both accelerated on the month for the first time since April, with a notable rebound in the Transport, Tourism & Leisure sector.

Great Expectations

Markets have been on fire since late October, with equities marching higher and bond yields tumbling, as investors bet on rapid rate cuts in 2024.