European and Chinese manufacturing growth rates slowed in November according to data provider Markit. The eurozone manufacturing PMI rose to 51.5 from last month’s 51.3, in-line with economist estimates. German manufacturing growth remained strong, but France and periphery countries contracted. Markit noted that the rate of growth implied a modest 0.2% GDP growth for the eurozone in the fourth quarter. China’s manufacturing PMI slowed during the month to 50.4 from 50.9 last month, short of economist estimates of 50.8.
The Bank of Japan left its monetary easing program on hold, stating that it stood ready to defend its 2% inflation goal if necessary. However, because of the slow rate of price growth, economists took this as a sign that the central bank would move to further defend its inflation target, potentially enlarging its expansion of the monetary base and pushing back the date of its inflation target from 2015 to 2016. The Japanese Nikkei
(INDEXNIKKEI:NI225) rallied 1.92%.
US equities recovered from three straight days of losses led by strong gains in high-beta tech and pharmaceutical stocks. The S&P 500
(INDEXSP:.INX) closed up 0.81%. Financial stocks, particularly those of banks, showed the strongest gains out of all S&P stocks, closing up 1.42%.
Gold continued its decline, falling below $1,250 per ounce. Crude oil rebounded from two weeks of sideways trading to gain 1.41% at the close of floor trading. Weekly natural gas inventories fell by 45 billion cubic feet according to the EIA. Analysts had been expecting a decline of 34 to 38 bcf. Natural gas initially rallied by 2%, but eventually traded back down to the pre-inventory levels.
Jobless claims declined to 323,000 last week, below the estimate of 335,000. The prior week was revised up to 344,000 from 339,000. Producer price increases remained very muted and pointed to the high potential for disinflation next year. Producer prices rose 0.3% from a year ago and core prices rose 1.4%.
Tomorrow's Financial Outlook
Tomorrow will be a light day for economic data releases in the US. The Labor Department will release its Job Openings and Labor Turnover Survey for September. The survey is closely watched by economists because it typically reflects the true underlying strengths or weaknesses in the labor market. The Kansas City regional manufacturing survey is also due out.
In global market-moving news, Germany will release the final estimate of its third-quarter GDP. The initial estimate saw growth of 0.3% quarter-over-quarter. Also, Canada will release consumer price increases and retail sales from October.
The only earnings report scheduled for tomorrow is Foot Locker
No positions in stocks mentioned.
The information on this website solely reflects the analysis of or opinion about the performance of securities and financial markets by the writers whose articles appear on the site. The views expressed by the writers are not necessarily the views of Minyanville Media, Inc. or members of its management. Nothing contained on the website is intended to constitute a recommendation or advice addressed to an individual investor or category of investors to purchase, sell or hold any security, or to take any action with respect to the prospective movement of the securities markets or to solicit the purchase or sale of any security. Any investment decisions must be made by the reader either individually or in consultation with his or her investment professional. Minyanville writers and staff may trade or hold positions in securities that are discussed in articles appearing on the website. Writers of articles are required to disclose whether they have a position in any stock or fund discussed in an article, but are not permitted to disclose the size or direction of the position. Nothing on this website is intended to solicit business of any kind for a writer's business or fund. Minyanville management and staff as well as contributing writers will not respond to emails or other communications requesting investment advice.
Copyright 2011 Minyanville Media, Inc. All Rights Reserved.