Softer PMI services data weighed on market sentiment

Monday, January 06, 2014

China’s HSBC/Markit Services PMI declined to 50.9 in December from 52.5 in November, weighing on market sentiment and adding pressure to Asian equity markets. The Hang Seng and Nikkei indices retreated sharply by 0.6% and 2.35%, respectively. The yen has edged higher from recent five-year lows against the USD and the EUR.

European equity markets have posted modest gains in early trading this morning, as investors await the Services PMI data from Eurozone, Germany, UK and the US. German CPI inflation figures as well as Eurozone’s Sentiment index will provide further momentum to the European equity markets, while in the afternoon the focus will switch to the release of the US factory orders/durable goods and the ISM non-manufacturing PMI index. The US dollar remains strong, with the USD index eyeing the 81.0 level, while the euro has been trading sideways around 1.36 area against the dollar.  

Commodities: Brent crude rebounded above $107 per barrel, however, the restart of key oil operations in Libya could limit gains. LME Copper slipped lower as renewed concerns about the economic conditions in China added pressure to base metals prices. The main focus this week will be on the FOMC minutes on Wednesday as well as US non-farm payroll data on Friday.

Gold has rallied for a fifth consecutive session to hit its highest level in nearly three weeks, as weaker global equity markets have prompted investors to precious metals.

Gold- XAU

XAU Curncy

 

Events for today:

0200

CN

Dec

HSBC Services PMI

0855

DE

Dec

Services PMI

0900

EZ

Dec

Services PMI

0930

UK

Dec

Services PMI

1500

US

Dec

ISM Non-Manufacturing

1500

US

Nov

Factory Orders & Durable Goods

 

All times UK Local Time

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