U.S. Markets Update On December 3rd, 2019

U.S. Markets Update On December 3rd, 2019

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Dollar slides to two-week low after soft U.S. manufacturing data, Wall street falls ,Gold dips,Oil futures rise on talk of further opec + supply curbs - December 2nd, 2019.

Market Roundup

• Brazil Nov  Markit Manufacturing PMI  52.9, 52.9 forecast, 52.2 previous

• Canada Nov RBC Manufacturing PMI  51.4 , 52.6 forecast, 51.2 previous

• US Nov Manufacturing PMI  52.6, 52.2 forecast, 52.2 previous

• US Oct Construction Spending (MoM)  -0.8%,0.4% forecast, -0.3% previous
• US Nov ISM Manufacturing Employment 46.6, 47.7 previous

• US Nov ISM Manufacturing New Orders Index 47.2, 49.1 previous

• US Nov ISM Manufacturing PMI  48.1, 49.2 % forecast, 48.3 previous

• US Nov ISM Manufacturing Prices  46.7, 47.0 forecast, 45.5 previous

• Brazil Nov Trade Balance 3.43B, 3.37B forecast, 1.21B previous

Looking Ahead - Economic Data (GMT)

• 00:01 UK Nov BRC Retail Sales Monitor (YoY)  -0.4%,0.1% previous

• 00:30 Australia Current Account (Q3) 6.1B forecast, 5.9B previous

• 00:30 Australia  Net Exports Contribution (Q3) 0.2, 0.6% previous

•01:45 Chinese Nov Composite PMI   52.0 previous

• 03:30 Australia  Dec RBA Interest Rate Decision 0.75%,0.75% previous

Looking Ahead - Events, Other Releases (GMT)

• 04:30   Australia RBA Rate Statement

Currency summaries

EUR/USD: The euro strengthened against the U.S. dollar on Monday, as greenback was weighed down after downbeat manufacturing data. Data from the Institute for Supply Management (ISM) showed the U.S. manufacturing sector contracted for a fourth straight month in November as new orders slid to around their lowest level since 2012. At (GMT 19:34), the euro was down 0.77 percent at $1.1056.The dollar index, which measures the greenback against six major currencies, was 0.24 percent lower at 97.87. Immediate resistance can be seen at 1.1100 (Psychological level), an upside break can trigger rise towards 1.1166 (200 DMA).On the downside, immediate support is seen at 1.1025 (5 DMA), a break below could take the pair towards 1.0989 (15 Oct low).

GBP/USD: The pound edged higher against dollar on Monday, as polls showed that the Conservative Party was leading albeit with a smaller advantage, increasing the probability that the Dec. 12 UK election will end in a hung parliament. Sterling was last trading at 0.11% at $1.2941. It was flat against the euro at 85.54 pence. The pound has recovered slightly since last week from around $1.28 and 85 pence per euro. Immediate resistance can be seen at 1.2977 (Higher BB), an upside break can trigger rise towards 1.3000 (Psychological level).On the downside, immediate support is seen at 1.2879 (21 DMA), a break below could take the pair towards 1.2800 (Psychological level).

USD/CAD: The Canadian dollar weakened against its U.S. counterpart on Monday, adding to its November decline as investors worried about a potential escalation of global trade conflicts and awaited a Bank of Canada interest rate decision this week. At (1908 GMT), The Bank of Canada, which is expected on Wednesday to leave its benchmark interest rate at 1.75%, has expressed concern about global trade uncertainty. The loonie has been pressured since October by a more dovish stance from the central bank. At (1945 GMT), the Canadian dollar was trading 0.16% lower at 1.3295 to the greenback. Immediate resistance can be seen at 1.3313 (Nov 29th high), an upside break can trigger rise towards 1.3348 (10 Oct high).On the downside, immediate support is seen at 1.3244 (21 DMA), a break below could take the pair towards 1.3200  (Psychological level).

USD/JPY: The U.S. dollar declined against the yen on Monday, after data showed the U.S. manufacturing sector contracted for a fourth straight month in November and construction spending fell unexpectedly, stoking fears the world’s largest economy could go into recession. The Institute for Supply Management’s (ISM) index of national factory activity fell to 48.1 in November from 48.3 in October, down for a fourth month. At (GMT 19:49),the dollar was 0.45 percent lower versus the Japanese yen at 108.99. Strong resistance can be seen at 109.76 (Daily high), an upside break can trigger rise towards 110.00 (Psychological level).On the downside, immediate support is seen at 108.93(21 DMA), a break below could take the pair towards 108.00 (Psychological level).

Equities Recap

  • European shares posted their biggest daily drop in two months on Monday, with most major markets including Germany and France slumping more than 2%, as a reimposition of U.S. metal tariffs on Brazil and Argentina triggered a decline in global sentiment.
  • UK's benchmark FTSE 100 closed down by 0.82 percent, Germany's Dax ended down by 2.05 percent, France’s CAC finished the day down by 2.01 percent.
  • U.S. stock indexes dropped on Monday after data showed the U.S. manufacturing sector contracted for a fourth straight month in November as new order volumes slid to their lowest level since 2012.
  • Dow Jones was down by 0.69 percent, S&P 500 was down 0.60 percent, Nasdaq was down by 0.94 percent.

Treasuries Recap

  • U.S. Treasury yields dropped on Monday after the Commerce Department reported that construction spending unexpectedly fell in October as investment in private projects tumbled to its lowest level in three years.
  • The benchmark 10-year yield was last at 1.833%, up 5.7 basis points on the day, steepening the yield curve.

Commodities Recap 

  • Gold prices fell on Monday after better-than-expected manufacturing data from China assuaged fears of a slowdown in global growth while deficit-ridden autocatalyst metal palladium soared to an all-time high.
  • Spot gold slipped 0.4% to $1,457.96 per ounce by 1310 GMT. U.S. gold futures  fell 0.6% to $1,463.80 per ounce.
  • Oil futures gained over 1% on Monday on hints the Organization of the Petroleum Exporting Countries (OPEC) and its allies may agree to deepen output cuts at a meeting this week and as rising manufacturing activity in China suggested stronger demand.
  • Brent futures for the most active contract for February delivery were up 76 cents, or 1.3%, to $61.25 a barrel by 11:39 a.m. EST (1639 GMT), while U.S. West Texas Intermediate (WTI) crude was up 89 cents, or 1.6%, to $56.06.