Thursday saw risk assets ride a much needed relief rally as a continuing stream of encouraging US data soothed sentiments. While weekly jobless claims edged higher to 381k vs. expected 375k, Chicago PMI printed better at 62.5 for December vs. expected 61 and Pending Home Sales jumped +7.3% in November vs. broad market expectations for a +1.5% rise.
The S&P 500 and DJIA climbed higher by about +1.1% on average and the greenback fell back against both G10 and EM currencies as the euro recaptured the 1.2900 handle. US (WTI) and UK (Brent) crude oil neared $100/bbl and $108/bbl, respectively, as risk assets rallied across the board.
However, we think caution should be heeded for any moves seen this week as they may not accurately represent the opinion of the entire market due to the thin volumes accompanying the holiday trading week.
The data slate ahead in the Asia Pacific Session is relatively light. Australia November Private Sector Credit is set for release at 1930ET but all remaining eyes will be on HSBC December Manufacturing PMI due out at 2130ET.
China HSBC Manufacturing PMI printed at 47.7 in November suggesting contraction; any number below the prior may see risk assets pare back Thursday's gains while a print above 50 may see further gains.
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