The Caixin/Markit manufacturing PMI rose to 54.9 from October’s 53.6
Wall Street stocks closed down on Monday but still had one of the best Novembers on record. The Dow Jones Industrial Average was down 0.9% while the S&P 500 declined 0.5% and the Nasdaq Composite fell 0.1%. Investors booked some profits after the historically strong gains logged in November, with the Dow posted its best monthly return since January 1987. The S&P 500 and the Nasdaq climbed over 10% each, their biggest monthly advances since April.
Today in Asia, stocks traded on an upbeat note as market players cheered another upbeat economic report out of China and South Korea. The Caixin/Markit manufacturing PMI rose to 54.9 from October’s 53.6 while South Korea reported exports rose 4% in November over a year earlier, rebounding from October’s decline. As a result, the Shanghai Composite Index gained 1.77% while the Nikkei 225 in Tokyo advanced 1.4%. The Kospi in Seoul advanced 1.65% and the S&P/ASX 200 in Sydney was 1% higher after the RBA left its policy tools unchanged during the final interest rate decision of the year.
European stocks followed suit and opened higher on Tuesday, cheering strong economic updates and upbeat news on vaccines. According to final results announced by Moderna, its coronavirus vaccine is 94.1% effective in preventing COVID-19 and 100% effective in preventing severe illness. Meanwhile, England could start with the vaccination campaign against COVID-19 from December 7, and Pfizer could be the first to be distributed if approved.
As risk sentiment has improved again, the safe-haven dollar came under renewed selling pressure after a short-lived recovery seen at the start of the week. Following fairly strong rejection from the 1.2000 barrier, EURUSD regained the upside bias, nearing the key target again. In case of a successful shot at the 1.2000 handle, the common currency will likely refresh 2020 highs.