What to Watch in the Day Ahead - Tuesday, Dec 1

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U.S. factory activity likely ticked up in November, which would
offer more evidence that manufacturing was turning a corner
after being weighed down by a strong dollar and deep spending
cuts in the energy sector. According to a Reuters survey, the
Institute for Supply Management will likely report that its
national factory index rose to 50.5 last month from a reading of
50.1 in October. (1000/1500) Separately, the Department of
Commerce is likely to report construction spending for October
at 0.5 percent. (1000/1500) Automakers will report sales figures
for November.

U.S. grocery retailer Albertsons Companies Inc is expected to
raise as much as $1.7 billion in its IPO, valuing the company at
about $12.35 billion. The No.2 U.S. grocery chain postponed its
IPO in October amid weaker-than-expected demand from investors,
Reuters exclusively reported. The company is going public at a
time when investors have been giving most IPOs a cold reception
since the stock market plunged in August.

The Federal Reserve Bank of Chicago President Charles Evans
speaks on current economic conditions and monetary policy before
the Lansing Regional Chamber of Commerce Economic Club Luncheon.

Canada's gross domestic product report is expected to confirm
that the economy pulled out of recession in the third quarter,
with growth forecast to ramp up to a 2.4 percent annualized
rate. However, monthly figures are expected to show no growth
for September, suggesting the third quarter ended on a weak
note. (0830/1330) Separately, auto makers, who expect 2015 to be
a record year for the sale of Canadian vehicles, report sales
figures for November.

Bank of Nova Scotia and Bank of Montreal, Canada's third and
fourth biggest banks, are expected to report higher quarterly
earnings for the fourth quarter. Investors remain concerned
about the weakness in the oil price and its impact on the
lenders. The quarterly report could show signs of increasing
gross impaired loans and possible write-downs.

European Central Bank publishes Target 2 balances. The Target 2
system facilitates payments between banks in different euro zone
countries by channeling them through each national central
bank's account at the ECB. Cross-border payment imbalances
increased during the 2010-2012 euro zone debt crisis as the
private sector withdrew capital and banks turned to the ECB for
funding because banks from the stronger economies stopped
lending to them. Italian and Spanish net liabilities have
declined from their 2012 peak while Greece's have increased
again since late 2014, along with political uncertainty in the
country. The ECB said it would now publish Target 2 data on the
first working day of every month, albeit with a one-month time
lag.

Brazil's economy probably shrank at the fastest annual pace on
record in the third quarter, crippled by a combination of
government budget cuts, rising inflation and political gridlock.
The gross domestic product in Latin America's largest economy
likely contracted 1.2 percent in the third quarter from the
second after seasonal adjustments, following a decline of 1.9
percent between April and June. (0830/1130)

The closely watched survey of economists by the Mexico central
bank, which sheds light on analyst expectations for growth and
inflation, is scheduled for release.

LIVECHAT- CURRENCY CORNER with FX analyst Kathy Lien of BK Asset
Management
Kathy sketches out a year-end trading strategy turning on
differences in monetary policies among the Federal Reserve and
other central banks while taking questions on prospects for the
euro and the yen after Japan's fall into recession. To join the
Global Markets Forum, click here