S&P 500 futures point to a strong opening in the cash markets ahead of the signing ceremony on January 15th of the Phase One trade deal. China earlier today announced a cut to its Reserve Requirement Ratio (RRR) by 50 basis points from January 6th. The bank of China move helped stocks around the globe for a positive start. In macro data out of China the Manufacturing PMI came in at 51.5 below expectations of 51.7 in December, disappointing investors.
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The European PMI’s came stronger than expected. The Germany Manufacturing PMI came in at 43.7 topping expectations of 43.4 in December. France Markit Manufacturing PMI came in at 50.4 beating expectations of 50.3. European Monetary Union Manufacturing PMI came in at 46.3 beating expectations of 45.9 in December.
The Dow Jones futures are 0.55% higher at 28,664, and the Nasdaq futures are 0.68% at 8,811.
European equities jumped higher the first trading session of the year boosted by better PMI’s from Germany and France. The DAX Index is 0.86% higher at 13,363. The CAC 40 is 1.24% higher at 6,052 while the FTSE Mib adds 1.29% at 23,810. In London the FTSE 100 is 0.87% higher at 7,607.
Asian stock markets finished higher. Hang Seng was 1.25% higher at 28,543, the Shangai Composite index ended 1.15% higher at 3,085, while in Singapore the FTSE Straits Times index added 0.91% at 3,252. Nikkei will be closed for the rest of the week.
Ethereum Completes the Muir Glacier Hard Fork
In cryptocurrencies market the new year started with the sellers having the upper hand. Bitcoin is under pressure below $7,500. Ethereum gives up 0.79% at $129.24 after the Muir Glacier hard fork completed.
Gold price edged higher before the opening bell in Wall Street despite the stronger US dollar today and positive news for the signing of phase one deal. Crude oil hovers close to three-month highs as geopolitical tensions increased in the Middle East after the U.S strikes in Iraq and Syria.