Positive sentiment has returned to markets and Dow stock futures in Wall Street has turned higher as traders digest the positive news from the trade negotiations front. China and USA are close to signing a Phase One agreement despite the recent escalation in trade talks after President Trump signed the legislation that supports the Hong Kong protesters, as we are getting closer to December 15th deadline of the implementation of tariffs on the $150bn of Chinese goods.
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ISM Non-Manufacturing PMI Disappoints
Yesterday the ISM Non-Manufacturing PMI registered at 53.9 below economists expectations of 54.5 in November.
In Europe, the European Monetary Union Gross Domestic Product s.a. (quarter over a quarter) came in at 0.2% in line with expectations. The yearly reading came in at 1.2% matching forecasts. The Employment Change (quarter over a quarter) came in at 0.1% for the third quarter of 2019.
The disappointment came earlier from German Factory Orders s.a. (month over month) came in at -0.4%, below the forecasts of 0.3% in October, while the year over year figure came in at -5.5%, topping estimates of -6.1% in October. European Monetary Union Retail Sales (YoY) also disappointed as it came in at 1.4% below consensus of 2.2% in October.
The Nasdaq futures as of writing are 0.52% higher at 8,338, the Dow Jones futures trading 0.43% higher at 27,762, the S&P 500 futures add 0.39% at 3,123.
Initial Jobless Claims and Trade Balance Will Set the Tone
In our calendar today we have the Initial Jobless Claims, Trade Balance, and monthly Factory Orders. The Initial Jobless Claims expected at 216k the previous reading was 213k. The Continuing Jobless Claims expected at 1.663m the last reading was at 1.64m. The forecasts for the factory orders are for an increase of 0.4% from a previous drop of -0.6%.
European indices are trading mostly higher midday, DAX index seesaws amid mixed trade talks signals. The CAC 40 is 0.76% higher at 5,843 while the FTSE 100 in London is under pressure for one more day as the GBPUSD trades close to seven-month highs.
In Asia stock indices ended higher; the Singapore Straits Times Index ended 0.46% higher at 3,174, the Nikkei 225 finished 0.71% higher at 23,300; the Hang Seng finished 0.59% higher at 26,217.
GBPUSD is 0.28% higher at 1.3140 making fresh seven-month highs boosted by the recent polls as we approach the general election on December 12. The EURUSD trades 0.14% at 1.1092 consolidating at two-week highs. AUDUSD is 0.27% lower at 0.6827 after the Australia Retail Sales s.a. came in at 0%, below forecasts of 0.3% for October and the Australia Trade Balance came in at 4502M, below estimates of 6100M in October.
In commodities markets, gold prices consolidate around $1,475 as the optimism return in trade talks; while crude oil prices trade 0.55% higher at $58.75 on supportive inventories while the OPEC+ meetings eyed.