Strong Chinese data spreads optimism across markets

Monday, June 02, 2014

China’s manufacturing PMI increased to 50.8 in May from 50.6 in April, beating analysts’ expectations. The data indicates the country’s manufacturing activity expanded at its quickest pace in five months. In Japan, manufacturing PMI was reported at 49.9, just below the key 50.0 level. The Nikkei surged more than 300 points (2.07%), while the JPY rallied higher, testing 102.00 against the USD.   

China's Manufacturing PMI

CPMINDX Index (China Manufacturi 2014-06-02 09-02-24

JPY Spot

JPY Curncy (Japanese Yen Spot )  2014-06-02 09-02-59

European equity markets have climbed higher in early trading this morning, ahead of the release of key macroeconomic data from the US and Eurozone, including Markit manufacturing PMI in Germany and the UK as well as German CPI inflation figures. In the US, the main focus will turn to the ISM Manufacturing PMI and construction spending.  

Oil: Brent front month futures edged higher, eyeing the $110 per barrel area, supported by robust Chinese manufacturing PMI data which raised hopes about a strong rebound in the oil demand from the world’s second biggest oil consumer. The WTI front month contract also climbed higher in early trade, holding above $103 per barrel.

Brent Front Month

CO1 Comdty (Generic 1st 'CO' Fut 2014-06-02 09-03-46

Precious Metals: Gold retreated for a fifth consecutive session in its longest losing streak since November, dragged lower by stronger global equity markets and weak physical demand from Asia.

XAU Spot

XAU Curncy (Gold Spot   $_Oz )  2014-06-02 09-04-15

 

Events for today:

 

0800

UK

May

Halifax House Prices

0855

DE

May

Markit Mfg PMI

0900

EZ

May

Markit Mfg PMI

0930

UK

May

Markit CIPS Mfg

1300

DE

May

CPI

1445

US

May

Markit Mfg

1500

US

May

ISM Manufacturing

1500

US

Apr

Construction Spending

 

All times UK Local Time

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