Equities higher on improved China data
Welcome to December. Global indices have started the week and month higher after China data released at the weekend showed an improvement in the manufacturing sector. Clashes in Hong Kong restarted at the weekend after the lull following the district elections.
US30USD Daily Chart
The US30 index looks set to snap a two-day losing streak after opening higher following the China data. It’s within a whisper of last week’s record high
The 55-day moving average has risen to 27,195, edging higher toward possible trendline support around the 27,235 level
We have two PMI numbers for November scheduled for today. Firstly, the final Markit manufacturing PMI (flash reading 52.2) and then the ISM PMI (seen rising to 49.4 from 48.3).
DE30EUR Daily Chart
The Germany30 index likewise has opened higher this morning on the China data optimism
The 55-day moving average has risen to 12,765. The 23.6% Fibonacci retracement of the rally from October 3 to November 12 is at 12,960
The final readings for the Markit manufacturing PMIs for both Germany and the Euro-zone are due today. Provisional numbers were 43.8 and 46.6, respectively. New ECB President Lagarde is scheduled to speak.
CN50USD Daily Chart
The China50 index slumped to the lowest level since October 8 on Friday, the second daily loss in a row. The index is expected to open higher this morning
The index headed toward the 200-day moving average at 13,417, Which has supported prices since February 11
China’s November manufacturing PMI beat estimates, rising to 50.2 from 49.3 in October. That’s the first time it’s been above the 50 contraction/expansion threshold in seven months. The Caixin PMI is due today and is expected to dip to 51.4 from 51.7, according to the latest survey.
