Stock futures in Wall Street nudge higher before the Wall Street open as traders cheered positive headlines from the trade talks front. The report says that the two superpowers are close to signing a Phase One deal despite the recent escalation in trade talks after President Trump signed the legislation that supports the Hong Kong protesters.
China and Germany Services PMI Beat Forecasts
During the Asian session the China Services PMI came in at 53.5 topping forecasts of 52.7 in November. Earlier this week the China Caixin Manufacturing PMI came in at 51.8 beating forecasts of 51.4 in November. The China manufacturing PMI came in at 51.8 the October reading was at 51.7.
The Germany Services PMI came in at 51.7 topping forecasts of 51.3 in November, the Composite PMI came in at 49.4 also topping expectations of 49.2.
Germany Manufacturing PMI came in at 44.10 above market consensus of 43.8 for November. The European Monetary Union Manufacturing PMI came in 46.9 above expectations of 46.6 in November while the France Manufacturing PMI came in at 51.7, topping forecasts 51.6 in November.
The Dow Jones Industrial futures trading 0.56% higher at 27,638, the Nasdaq futures trading 0.63% higher at 8,303, the S&P 500 futures trading 0.48% higher at 3,106, all contracts are making fresh daily highs.
Traders Focus on ISM Non-Manufacturing PMI
Investors await a report on ADP Nonfarm Employment Change and the ISM Non-Manufacturing PMI from USA and a weekly report on crude oil inventories.
Analysts expect that the ISM Non-Manufacturing PMI to come at 54.5 the previous reading was at 54.7. The ADP Nonfarm Employment Change expected at 176K the last reading was at 125K.
Asian stocks finished lower; the Nikkei 225 finished 1.05% lower at 23,135; the Hang Seng finished 1.25% lower at 26,062, while the Singapore Straits Times Index ended 0.42% lower at 3,159.
European stocks turned positive after a weak start, the Dax index as of writing trades 1.16% higher the CAC 40 trading 1.35% higher at 5,804 while the FTSE 100 in London trades 0.18% higher at 7,171.
GBPUSD and Fresh Six-Month Highs
In foreign exchange, the GBPUSD is 0.71% higher at 1.3084 making fresh six-month highs boosted by the recent polls, the EURUSD trades 0.05% lower at 1.1075 retreating from two week highs while the AUDUSD is 0.16% lower at 0.6836 after the Australia Gross Domestic Product (QoQ) came in at 0.4%, below forecasts of 0.5% in the third quarter and despite strong services PMI from China.
In commodities markets, gold prices retreat from monthly highs after the optimism in trade talks while crude oil prices trade 1.55% higher at $56.97 ahead of the US inventories report and the OPEC meeting in Vienna.
In cryptocurrencies markets, the Bitcoin BTCUSD slides toward the $7,000 support, cancelling the recent rebound, while ETHUSD trades 1.00% lower at 145.91 and LTCUSD trades 0.09% higher at 44.86.