The disappointing Markit manufacturing PMI data from the US, Europe and Asia set a bearish tone across the equity markets in today’s trading session. The CAC, DAX, IBEX and London equity benchmark slid lower and extended losses between 0.3% and 1.2%, while the Dow Jones index also remained in negative territory.
On the macroeconomic front, US Markit manufacturing PMI was reported at 54.8 in November, missing analysts’ expectations of 55.0, while ISM manufacturing declined to 58.7 in November from 59.0 in October. In Eurozone, Germany’s manufacturing PMI fell to 49.5 m/m in November compared to 50.0 in October, while the Eurozone’s Markit manufacturing PMI was down at 50.1 in November compared to 50.4 a month ago.
Energy stocks dragged the London equity market lower today following the large sell-off in the oil market over the last few trading sessions. Tullow Oil, BP, Petrofac and Royal Dutch Shell retreated between 0.85% and 5.3%, at the time of writing. WTI front month futures recovered from earlier losses and climbed above $67/barrel, while Brent front month futures rebounded to retest $71/barrel. However, US gasoline futures breached below $1.80/gallon in today’s session, hitting a 5-year low.
Base metal and precious metal prices rebounded after the heavy sell-off last week. Gold gained more than 2.5% ti retest $1,200/ounce and silver surged over 5% to trade above $16.30.
Base metal prices remained in positive territory while a softer USD provided support. Copper climbed over 1% above $6,400 and aluminium jumped above $2,000, as the USD index slid lower towards 88.0 after hitting a high at 88.45 earlier on the day.
Investors will be keeping an eye on the central bank meetings of the Reserve banks of India and Australia, central banks of England and Canada and the ECB will all announce monetary policy and interest rates decisions later this week.
Tomorrow, the main focus will turn to the US construction spending data as well as Eurozone’s PPI figures and UK Markit/CIPS construction PMI.