A marginally better than forecast Chinese manufacturing PMI set the European markets up for a solid start to December.
At 51.8 against the 51.5 expected and the 51.7 released in November, the latest Caixin PMI showed the sector firming up slightly, making it 5 consecutive months of improvements. In contrast the final Eurozone reading is estimated at 46.6 – the German figure is looking even worse – while the UK number is forecast to arrive at 48.3.
On the back of this the European indices opened relatively happy. The DAX and CAC climbed 0.4% and 0.5% respectively, while the FTSE added 30 or so points – not enough, however, to lift it back across 7400.
Europe’s gains may have been greater if it weren’t for a report from Axios, citing a source close to Trump’s negotiating team, stating a ‘phase one’ trade deal between the US and China has – as expected – been ‘stalled because of Hong Kong legislation’. The site went on to claim that the agreement would go through ‘year-end at the earliest’. Remember, this thing was meant to be signed at the cancelled APEC summit in Chile in mid-November.
After spending November ranging between $1.28 and $1.295, cable opened December near the top end of that band, unperturbed by the weekend’s headlines highlighting the Conservatives’ shrinking lead in the polls. Against the euro, meanwhile, sterling is coming off of an even stronger performance last month, one that saw it add over 1.2% versus the single currency.
Disclaimer: Spreadex provides an execution only service and the comments above do not constitute (or should not be construed as constituting) investment advice or recommendations, or a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. Any person placing trades based on their interpretations of the above comments does so entirely at their own risk. Spreadex Ltd is a financial and sports spread betting and sports fixed odds betting firm, which specialises in the personal service and credit area. Founded in 1999, Spreadex is recognised as one of the longest established spread betting firms in the industry with a strong reputation for its high level of customer service and account management.
In relation to spread betting, Spreadex Ltd is authorised and regulated by the Financial Conduct Authority. Spread betting carries a high level of risk to your capital and can result in losses larger than your initial stake/deposit. It may not be suitable for everyone, so please ensure you fully understand the risks involved.