20121219 1005 Global Economy Related News.

China: Foreign investment declines for 12th time in 13 months
Foreign direct investment (FDI) in China fell for the 12th time in 13 months, suggesting the nation’s economic-growth rebound has yet to attract a fresh influx of capital spending from abroad. Investment dropped 5.4% in November from a year earlier to USD8.29bn. FDI inflows in the first 11 months of the year fell 3.6% to USD100bn. (Bloomberg)

China: Said to set growth target at 7.5% for second year
China has set its initial target for economic growth at 7.5% for a second year and tightened its inflation goal to the lowest level since 2010, two bank executives and a regulatory official briefed on the matter said. Policy makers said during the annual central economic work conference that ended on 16 Dec that they aim to keep inflation at about 3.5%, they said. (Bloomberg)

Australia: RBA cites softer labor market for 4 Dec interest rate cut
The Reserve Bank of Australia decided to cut interest rates to match the half-century low set during the 2009 global recession as a softer job market gave it room to bolster demand, minutes of its 4 Dec meeting showed. “Further confirmation that the peak in resource sector investment was near, and that the short-term outlook for non-resource investment remained subdued, indicated that there was a case for the board to provide that support,” the minutes showed. (Bloomberg)

UK: Inflation remains at 2.7% on cost of food, utility
UK inflation held at the highest rate since May last month as higher electricity and gas costs kept consumer-price growth above the Bank of England’s target. Consumer prices rose 2.7% from a year earlier, unchanged from Oct, as upward pressure came mostly from food and utilities. (Bloomberg)

US: Homebuilder confidence rises to highest level since 2006
Confidence among US homebuilders climbed in Dec for the eighth straight month, reaching its highest level in more than six years and adding to signs the real-estate market is aiding the economic expansion. The National Association of Home Builders/Wells Fargo index of builder confidence increased to 47, the highest since April 2006, from a revised 45. (Bloomberg)

US: Current account deficit narrowed 9% in third quarter
The current account deficit in the US narrowed in the third quarter, helped by slowing imports. The gap, the broadest measure of international trade because it includes income payments and government transfers, shrank 9% to USD107.5bn, the smallest in almost two years, from a USD118.1bn shortfall in the prior quarter. (Bloomberg)

S&P 500 advances to 2-month high amid optimism on budget talks
US stocks advanced, sending the Standard & Poor’s 500 Index to the highest level in two months, amid signs of progress in the efforts by President Barack Obama and Republicans to reach agreement on a new budget in Washington. The S&P 500 rose 1.2% to 1,446.79. It has gained 15% so far in 2012. The Dow Jones Industrial Average added 115.57 points, or 0.9%, to 13,350.96 yesterday. About 7.4bn shares changed hands on US exchanges, 20% above the three-month average. (Bloomberg)