Russia’s Manufacturing PMI Improved in December 2017
According to a report by Markit Economics, the final Russia manufacturing PMI (purchasing managers’ index) improved in December as compared to November 2017.
Macroeconomic Analysis
A Look at Emerging Market December PMI Reports
The iShares MSCI Emerging Markets ETF (EEM), which tracks the performance of emerging markets, rose 37.3% in 2017.
Commodities Are Strong Early on January 24
At 4:00 AM EST on January 24, the West Texas Intermediate crude oil futures for March 2018 delivery were trading at $64.50 per barrel—a gain of 0.05%.
US Dollar Index and Treasury Yields Are Mixed in the Early Hours
On January 24, 2018, the US Dollar Index opened the day lower and traded at fresh three-year low price levels in the early hours.
Analyzing European Markets Early on January 24
At 4:40 AM EST on January 24, the DAX Index was trading at 13,536.50—a fall of 0.17%. The iShares MSCI Germany (EWG) rose 0.54% on January 23.
Why Are Asian Markets Mixed on January 24?
The Shanghai Composite Index rose 0.4% and closed the day at 3,560.73 on January 24. The SPDR S&P China (GXC) rose 1.3% on January 23.
Analyzing Brazil’s Manufacturing PMI in December 2017
The final Markit Brazil manufacturing PMI stood at 52.4 in December compared to 53.5 in November 2017. The December PMI didn’t beat the initial estimate of 52.8.
China’s Services PMI Rose: Is the Economy Back on Track?
China’s final Markit services PMI stood at 53.9 in December compared to 51.9 in November 2017. It beat the preliminary market estimation of 51.8.
European Markets Were Stronger Early on January 23
At 5:05 AM EST on January 23, the DAX Index was trading at 13,574.50—a rise of 0.82%. The iShares MSCI Germany (EWG) rose 0.62% on January 22.
Why Did Asian Markets Increase on January 23?
On January 23, the Hang Seng Index rose 1.7% and closed the day at 32,930.70. The iShares MSCI Hong Kong (EWH) rose 0.87% on January 22.
Could the Bank of Japan Drive the Yen Lower this Week?
The Japanese yen (JYN) registered its second consecutive weekly gain against the US dollar.
Factors that Drove the British Pound over 1.38 against the Dollar
During the week ended January 29, 2018, British equity markets (BWX) were supported by the prospect of a soft Brexit.
Politics and Central Bank Comments Could Drive the Euro Higher
The Eurozone’s inflation data published on January 17 indicated that prices increased 1.4% in December 2017, which is still below the long-term average.
Are Bond Yields Set to Move Higher this Week?
The US Treasury is not able to issue any more debt until the debt ceiling is raised, which could increase the volatility in the bond markets.
How the US Dollar Could React to a US Government Shutdown
According to the January 19 Commitment of Traders report, released by the Chicago Futures Trading Commission, large speculators have turned bearish on the US dollar.
Could the US Government Shutdown Impact Market Volatility?
During the week ended January 19, 2018, global markets trended higher despite the possibility of a US government shutdown. The potential shutdown pushed volatility up.
European Markets in the Morning Session on January 22
At 4:30 AM EST on January 22, the DAX Index was trading at 13,419.50—a fall of 0.1%. The iShares MSCI Germany (EWG) rose 1.1% on January 19.
How Did Asian Markets Perform on January 22?
On January 22, the Hang Seng Index rose 0.25% and closed the day at 32,334.50. The iShares MSCI Hong Kong (EWH) rose 0.45% on January 19.
European Markets Are Strong Early on January 19
At 4:45 AM EST on January 19, the DAX Index was trading at 13,387.50—a gain of 0.8%. The iShares MSCI Germany (EWG) rose 0.58% on January 18.
Why Did the Consumer Price Index Rise in December?
According to the December CPI report released by the U.S. Bureau of Labor Statistics on January 12, consumer prices in December increased 0.1%.
Analyzing the Producer Price Index in December
The December PPI fell 0.1% month-over-month—compared to a 0.4% increase in November and October. The final demand index rose 2.6% in 2017.
What Could Happen if the US Debt Ceiling Isn’t Raised
The failure of US Congress to raise the debt ceiling would result in a partial government shutdown. The US Treasury wouldn’t be able to issue any government debt, and it could end up borrowing from its retirement savings fund.
Why Is US Debt So High?
Most countries tend to issue debt to fund their deficits and keep paying interest on these borrowings. These revenues are generated through taxes from companies and individuals.
Your Guide to the US Debt Ceiling
The current debt ceiling is likely to be breached on January 19, and once that happens, the US Treasury must stop issuing any new debt (SHY).
Eurozone Investor Confidence Improved: Will It Help Equity Market?
Eurozone (FEZ) (VGK) investor confidence has shown strong improvement in December 2017.
US Dollar Index and Treasury Yields on January 17
The US Dollar Index is trading above opening prices with stability. At 5:30 AM EST on January 17, the US Dollar Index was trading at 90.6.
Analyzing European Markets in the Morning Session on January 17
At 4:55 AM EST on January 17, the DAX Index was trading at 13,224.50—a drop of 0.16%. The iShares MSCI Germany (EWG) rose 0.14% on January 16.
How Did Asian Markets Perform on January 17?
On January 17, the Hang Seng Index rose 0.25% and closed the day at 31,983.41. The iShares MSCI Hong Kong (EWH) rose 0.08% on January 16.
Eurozone Services Activity Reached 6-Year High in December
According to a report by Markit Economics, the final Eurozone services PMI (purchasing managers’ index) showed a strong improvement in December 2017.
How Did Spain’s Services PMI Perform in December 2017?
According to a report by Markit Economics, the final Spain services PMI stood at 54.6 in December 2017 as compared to 54.4 in November.
How Japan’s Services PMI Trended in December 2017
According to a report provided by Markit Economics, Japan’s services PMI (EWJ) (DXJ) remained weaker in December 2017.
How Did France’s Services PMI Look in December 2017?
According to the data provided by Markit Economics, the final Markit France services PMI (purchasing managers’ index) fell marginally in December as compared to the previous month.
Why the Japanese Yen Finally Appreciated against the US Dollar
During the week ended January 12, the yen (FXY) closed at 111.04 against the US dollar (UUP), compared to 113.08 in the week ended January 5, appreciating by 1.8%.
Why a Soft Brexit Possibility Is Driving the British Pound Higher
The gains in the British pound were driven by the higher chances of a soft Brexit deal, which could see economic relations between the UK and the EU remain mostly unchanged.
What Factors Are Driving the Euro Higher?
According to the January 12 Commitment of Traders report, speculators increased their long euro positions by 16,823 contracts last week.
Why the US Bond Market Moved Lower Last Week
The core CPI of 0.3% pushed the annual number up by 0.1% to 1.8%.
Why the US Dollar Is Losing Its Appeal
The US Dollar Index (UUP) continued its decline, posting a fourth consecutive weekly loss during the week ended January 12.
Could the Threat of a US Government Shutdown Spike Volatility?
The Dow Jones Industrial Average appreciated ~1.6% for the week ended January 12, 2018, while the S&P 500 (SPY) returned ~1.3%. The tech-heavy NASDAQ (QQQ) posted a weekly gain of ~1.4%.
US Dollar Index Regained Strength Early on January 16
After falling for four consecutive trading weeks, the US Dollar Index started this week on a weaker note by falling to three-year low price levels.
Why Did Asian Markets Rise on January 16?
On January 16, the Hang Seng Index rose 1.8% and closed the day at 31,904.75. The iShares MSCI Hong Kong (EWH) rose 0.65% on January 12.
What Could Happen If China Wants Its Money Back?
If the Chinese government decides to sell its US debt (GOVT) holdings, it could lead to another possible global financial crisis.
Which Countries Hold the Most US Debt?
The United States holds the largest trade deficit in the world. The United States has had a trade deficit for more than four decades and continues to increase the deficit every year.
The US Bond Market and the Big Scare from China
On January 10, 2018, Bloomberg News broke a story that the Chinese government could be planning to slow down its purchases of US government debt (GOVT).
What UK Manufacturing Activity Indicates for the Economy
UK manufacturing activity in December Between November and December 2017, the UK manufacturing PMI (purchasing managers’ index) fell to 56.3 from 58.2 and missed the market expectation of 58. The index was mainly affected by the following: production output and volume improved at a slower rate new and export orders rose at a slower pace employment in the manufacturing sector slowed In […]
Eurozone Manufacturing Activity Reaches a High in December 2017
Eurozone manufacturing activity in December According to Markit Economics, the Eurozone’s manufacturing PMI (purchasing managers’ index) rose strongly in December 2017, to 60.6 from 60.1 in November 2017. It beat the market expectation of 60.4 and marked the strongest expansion in manufacturing activity since 1997. Major Eurozone members Germany (EWG) (DAX-INDEX), France (EWQ), Spain (EWP), and Italy […]
Germany’s Manufacturing Activity Reaches a Multidecade High
Germany’s manufacturing activity in December According to Markit Economics, Germany’s manufacturing PMI (purchasing managers’ index) showed a strong rise in December 2017, rising to 63.3 from 62.5 in November 2017. The index met the market estimate of 63.3, and marked the strongest expansion in German manufacturing activity since 1995. Germany’s strong manufacturing performance in December 2017 was […]
Why Japan’s Manufacturing Activity Improved in December 2017
Japan’s manufacturing activity in December Japan’s manufacturing PMI (purchasing managers’ index) improved in December 2017, rising to 54 from 53.6 in November 2017. Whereas the index was slightly below the preliminary market estimate of 54.2, it marked the strongest expansion in manufacturing activity since February 2014. The solid rise in Japan’s manufacturing PMI in December 2017 was mainly due […]
A Look at Spain’s Manufacturing Activity in December 2017
Spain’s manufacturing activity in December According to Markit Economics, Spain’s manufacturing PMI (purchasing managers’ index) rose to 55.8 in December 2017 from 56.1 in November. Whereas the index had reached an 11-year high in November, in December, it missed the market estimate of 56.4. Despite the lower PMI figure, manufacturing activity remained strong. Spain’s manufacturing PMI performance in […]
What France’s Manufacturing Activity Indicates
France’s manufacturing activity in December According to Markit Economics, France’s manufacturing PMI (purchasing managers’ index) rose strongly in December 2017, to 58.8 from 57.7 in November 2017. Whereas the index didn’t meet the market estimate of 59.3, it marked the strongest improvement in manufacturing activity since September 2000. France’s expansion in manufacturing activity suggests that business […]
What Key Economic Indicators Say about the Economy
In this series, we’ll take a look at December 2017 manufacturing PMI reports for major developed regions, namely the United States (SPX-INDEX), Germany (DAX-INDEX), France, Spain, Europe, Japan, and the United Kingdom (UKX-INDEX).