Equities rebound continues on sign of Chinese boom - 1.12.2020

The Dollar strengthening has halted currently . The live dollar index data show the ICE US Dollar index, a measure of the dollar’s strength against a basket of six rival currencies, rose 0.2% Monday as Chicago Purchasing Managers' Index slipped from 61.1 to 58.2 in November, the lowest level since August though still showing expansion of the US economy. Readings above 50.0 indicate industry expansion, below indicate contraction. GBP/USD resumed gaining Monday while EUR/USD resumed sliding as German inflation came in at -0.3% year-over-year in November, from -0.2% in October. Both pairs are higher currently. USD/JPY resumed climbing yesterday while AUD/USD reversed its rising with the dynamics reversed for both pairs currently.

Futures on three main US stock indexes are up currently. The three US main stock benchmarks fell Monday, suffering daily losses ranging from 0.1% to 0.9% while the blue-chip index DJI recorded a nearly a 12 per cent gain for all of November as investors now expect an uneventful transfer of power at the White House. European stock indexes are edging higher currently after a bearish session yesterday as British Foreign Minister Dominic Raab said Sunday talks between the UK and the European Union were heading into a “very significant” week. Asian indexes are rising today with Shanghai Composite leading the gains as Caixin Manufacturing Purchasing Managers’ Index (PMI) rose to 54.9 from October’s 53.6 indicating activity in China’s factory sector accelerated at the fastest pace in a decade.

Brent is extending losses today as the meeting by the Organization of the Petroleum Exporting Countries (OPEC) and its allies, including Russia, that could recommend changes to production quotas, was pushed back to Thursday instead of November 30 and December 1. The group, known as OPEC+, has curbed production by about 7.7 million barrels a day, and had planned to increase output by 2 million bpd from January but were still in disagreement on how much oil they should pump amid weak demand. Oil prices fell Monday. The US oil benchmark West Texas Intermediate (WTI) slipped 0.4% Monday and is down currently. February Brent crude lost 0.76% to $47.88 a barrel on Monday.