China’s official manufacturing PMI rose to 52.1 in November from 51.4 in October
Wall Street stocks finished higher in a shortened session on Friday amid fading political uncertainty and positive vaccine news. The benchmark index S&P 500 rose 0.24%, closing at an all-time high. The Nasdaq also set a record, rising by 0.90%, while the Dow Jones Industrial Average gained just 0.12%, slightly off the 30,000 psychological mark.
Asian markets lost early gains and closed lower on Monday amid renewed caution among investors. On the positive side, however, China’s official manufacturing PMI rose to 52.1 in November from 51.4 in October. It was the highest PMI reading since September 2017. Japan’s benchmark Nikkei 225 closed down 0.8% and South Korea’s Kospi fell 1.60%. China’s Shanghai Composite lost 0.5%.
In Europe, equities opened lower, with oil and gas shares shedding over 2.0% to lead losses at the start of the week as investors are getting nervous ahead of this week’s meeting of OPEC and allies. European Central Bank President Christine Lagarde is due to speak later today while on the data front, Germany inflation data will come into market focus.
Meanwhile, the dollar trims earlier losses while staying under pressure, with EURUSD nearing the 1.2000 barrier for the first time since late-August when the pair was rejected from the psychological handle. If the greenback stays on the defensive in the short term, the pair could attempt a move above 1.2000 but a decisive breakout looks unlikely at this stage.
Elsewhere, oil prices slid after a panel of OPEC+ ministers failed to reach an agreement on supply before a full meeting. Still, Brent crude managed to hold above the $47 figure and trimmed intraday losses as traders have shifted into a wait-and-see mode ahead of the OPEC+ decision due tomorrow. On the upside, the $50 barrier remains in focus.
