The first trading day of 2012 witnessed better than expected data from China, UK, Switzerland, Germany and USA, noting that investors’ appetite was boosted toward high yielding assets.
In China the non-manufacturing PMI unexpectedly rose to 50.3 in Dec. from 49 in Nov., while Switzerland the PMI manufacturing for Dec. rose to 50.7 from 44.8 previous, adding to evidence the global economy is strengthening.
In UK the PMI manufacturing for Dec. rose to 49.6 from 47.7 previous, while in Germany the unemployment rate unexpectedly fell in Dec. to 6.8% from the precious 6.9%.
Finally the US ISM manufacturing rose for the month of December to reach 53.9 better than forecasted 53.4, taking into consideration that the US data for November and December was better than expected till now, not to forget that holiday season strengthened economic activities in USA.
Manufacturing data came out better than expected globally, increasing demand on the higher yielding assets as well as commodities, where oil is trading around $102.25 and gold around $1606.03.
Markets will still focus today on the FOMC minutes and what would the FEDs say about the recent activities. In the meantime the USD is trading with strong bearish momentum around the 79.56 level.
Worries from Europe’s debt crisis were put aside today, yet fears may be back any moment; after EU leaders warned from a tough 2012 which will determine the euro to continue its struggle against other major currencies.
In Europe DAX rose today 1.50% and FTSE 100 rose 2.20%. The euro jumped above the 1.30 level trading as of this writing around the 1.3048. The pound also rose considerably trading around the 1.5650.
The AUD rose today trading around the 1.0359 level especially after a manufacturing index rose to 50.2 last month compared with 47.8 in Nov. in Japan the yen continues to strengthen, hurting exports, trading around 76.67.
Originally posted here