With some forex traders still ringing in the New Year, Asian session players had little to trade but China’s positive PMI report.
- NoKor’s Kim Jong Un: “A nuclear button is always on the desk of my office”
- Japan’s markets still out on holiday
- Australia’s AIG manufacturing PMI dips from 57.3 to 56.2 in December
- Australia’s commodity prices (y/y) slips by 5.9% vs. 4.0% decline in November
- China’s Caixin manufacturing PMI up from 50.8 to 51.5 in December
China’s Caixin manufacturing PMI
A private survey of China’s manufacturing conditions revealed stronger prospects for the month of December.
China’s headline Caixin manufacturing PMI came in at 51.5 for the month, which marks the highest reading since August. Increases were stronger for new orders and output, while growth in input and output prices slowed a bit.
Manufacturers continued to reduce staff in December as business owners anticipate lower client demand and disruptive national policy changes (e.g. crackdown on air pollution and financial deleveraging, cooling property market).
Still, market players cheered the strong headline numbers, which is consistent to the expansionary official manufacturing PMI reading printed over the weekend.
Mixed start to the week
With not a lot of data on the docket and Japan and New Zealand markets still closed for the holidays, the Asian bourses traded with mixed results.
- Australia’s A SX 200 is down by 0.32% to 6,040.6;
- Shanghai Composite is up by 1.08% to 3,342.982, and
- Hang Seng is up by 1.68% to 30,42.3.
Meanwhile, China’s positive PMI report was enough to boost gold and crude oil prices.
- Gold is up by 0.31% to $1,306.64;
- Brent crude oil is up by 0.74% to $67.09, and
- U.S. crude oil prices is up by 0.82% to $60.58.
Major Market Mover(s):
AUD and NZD
Both the Australian and New Zealand dollars were lifted by a rally in commodity prices and China’s positive PMI release.
AUD/USD is up by 34 pips (+0.44%) to .7835;
AUD/JPY is up by 43 pips (+0.49%) to 88.31;
NZD/USD is up by 15 pips (+0.21%) to .7114, and
NZD/JPY is up by 34 pips (+0.43%) to 80.18.
Overall risk appetite dragged the low-yielding yen lower despite Kim Jong Un low key threatening the U.S. with a nuclear attack yesterday.
EUR/JPY is up by 29 pips (+0.22%) to 135.45;
GBP/JPY is up by 3 pips (+0.02%) to 152.31, and
CAD/JPY is up by 8 pips (+0.09%) to 89.91.
Watch Out For:
- Swiss markets out on Second New Year holiday
- 8:15 am GMT: Spain’s manufacturing PMI (56.4 expected, 56.1 previous)
- 8:30 am GMT: Switzerland’s manufacturing PMI (64.5 expected, 65.1 previous)
- 8:45 am GMT: Italy’s manufacturing PMI (58.6 expected, 58.3 previous)
- 8:50 am GMT: France’s final manufacturing PMI to remain at 59.3?
- 8:55 am GMT: Germany’s final manufacturing PMI to remain at 63.3?
- 9:00 am GMT: Euro Zone’s final manufacturing PMI expected to stay at 60.6
- 9:30 am GMT: U.K.’s manufacturing PMI (58.0 expected, 58.2 previous)