Spreadex Market Update
US manufacturing mixed as Markit and ISM PMIs paint contrasting pictures of sector
The Dow Jones jumped nearly 90 points higher following a 54.1 reading for the Markit manufacturing PMI (compared to the 54.0 expected) alongside a slightly better than forecast 50.1 for the ISM survey. That former figure suggests a promising performance for the sector; the latter, on the other hand, is the lowest number since May 2013, and paints a far less heathy manufacturing picture.
It appears that investors took the negative news to heart, lifting the Dow Jones to near 3 month highs as November’s first piece of crucial information (in what is going to be a month full of over-scrutinised data) arguably dealt a blow to the Fed’s hopes of raising rates in December. The fervour around US news is only going to increase in importance as the week goes on, with factory orders, Markit and ISM services PMIs, a testimony from Janet Yellen and, of course, Friday’s non-farm jobs report still to come.
Over in the UK the FTSE finally managed to stop moping, growing by around 20 points after the US open. The main reason for the change in tone was a reversal of the morning’s mining sell-off; despite Rio Tinto, Anglo American and Antofagasta still doing their best to weigh the index down, gains for KAZ Minerals, Lonmin, Vedanta Resources and Glencore were enough to allow the FTSE to see the (green) light of day. The Eurozone, meanwhile, maintained the rich vein of post-manufacturing PMI form it hit this morning; the DAX is now a mere 50(ish) points away from 11000, whilst the CAC doesn’t need much of a push to cross its own psychologically significant 5000 level.
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