Market Blog > November 2016 > Market Review

Market Review

Euro zone business activity expanded the most in nearly a year due to strong manufacturing and services growth in Germany, fuelling some optimism that economic momentum is picking up again. In a report, Markit Economics said that French service sector activity rose more-than-expected last month, to a seasonally adjusted 52.6, from 51.4 in the preceding month. France’s manufacturing PMI fell less-than-expected last month, to a seasonally adjusted 51.5, from 51.8 in the preceding month. The same office said that German service sector activity rose unexpectedly last month to 55.0, from 54.2 in the preceding month. Germany’s manufacturing PMI fell more-than-expected last month,to a seasonally adjusted 54.4, from 55.0 in the preceding month. Euro zone service sector activity rose more-than-expected in the last quarter to 54.1, from 52.8 in the preceding quarter. The euro zone’s manufacturing PMI rose unexpectedly last month to 53.7, from 53.5 in the preceding month.

The number of individuals who filed for unemployment assistance in the U.S. last week increased 18,000 to a seasonally adjusted 251,000 for the week ended November 19. The number of people who filed for unemployment increased more than expected, bouncing back from its lowest level since 1973 but remaining in territory that point to a firming labor market. U.S. orders for long lasting manufactured goods rose at a stronger than expected rate in October rising 4.8% last month, compared to expectations for a rise of 1.5%.
 
Currencies: The dollar reached a fresh 14-year high against the other major currencies, after the release of mixed U.S. data failed to dampen optimism over the strength of the economy. The EURUSD traded lower between $1.0644 and $1.0526. The GBPUSD traded higher between $1.2361 and $1.2469. The USDJPY traded higher between ¥110.86 and ¥112.97.

Crude Oil: Oil prices failed to rise after reports of a larger-than-expected U.S. oil inventory reduction last week. On the ICE future Exchange, North Sea Brent crude traded lower between $49.49 and $48.56 On the New York Mercantile Exchange, U.S. light crude oil traded lower between $48.41 and $47.41.

Gold: Gold prices fell to the lowest levels since February as positive U.S. economic reports boosted expectations for a rate hike. On the COMEX division of the New York Mercantile Exchange, gold traded lower in a broad range between $1214.86 and $1181.62 an ounce.

Indices:  Asian stocks mostly rose as investors followed the exuberance of Wall Street's latest record run. Tokyo’s Nikkei 225 was closed. At the close in China, Shanghai edged down 0.03%.

Euro stocks moved lower as markets reacted to a series of manufacturing and service sector data from the euro zone. At the close in Frankfurt the DAX lost 0.48%. At the close in Paris, the CAC40 dropped 0.42%. At the close in Madrid, the IBEX 35 fell 0.28%. Finally, at the close in London the FTSE100 edged down 0.03%.

Wall Street was mixed although the Dow managed to hit new record highs, as investors digested announced data and prepared for the Thanksgiving holiday. At the close, the Dow Jones industrial average added 0.31%. The S&P 500 edged up 0.04% and the NASDAQ composite fell 0.11%.
 
Economic Calendar
Thursday 24th November 2016:

Time

Currency

Events

Forecast

Previous

00:30

JPY

Flash Manufacturing PMI

51.7

51.4

07:00

EUR

German Final GDP q/q

0.20%

0.20%

09:00

EUR

German Ifo Business Climate

110.6

110.5

09:30

GBP

BBA Mortgage Approvals

38.8K

38.3K

12:00

EUR

GfK German Consumer Climate

9.8

9.7

All Day

USD

Bank Holiday (Thanksgiving)

 

 

23:30

JPY

Tokyo Core CPI y/y

-0.40%

-0.40%

23:30

JPY

National Core CPI y/y

-0.40%

-0.50%

Posted: 11/24/2016 8:10:15 AM by Global Administrator | with 0 comments


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