The London mining sector is mixed today as the Caixin survey of Chinese manufacturing fell to 50.8 in November, down from 51 in October – traders were expecting a reading of 50.9.
The report showed the sectors is expanding, just at a slower rate. This has been the broad theme across Chinese economic indicators. Antofagasta and Vedanta Resources are in the red, while BHP Billiton and Rio Tinto are showing marginal gains today.
The rally in the euro is hurting the eurozone equity benchmarks, as the DAX, CAC 40 and FTSE MIB are firmly in the red this morning. The Continental equity markets are paying the price for their economic recovery, ultimately a stronger economy often translates into a stronger stock market, but for now the rally in the euro is holding them back.
Indivior shares are up 9.3% after the pharma company got approval from the Food and Drug Administration (FDA) for its opioid addiction drug .The treatment is tipped to be on the market in the US in early 2018.
GBP/USD has been hit by profit taking as the sterling enjoyed a positive run recently. Optimism surrounding the Brexit talks pushed the pound to a two year high versus the US dollar yesterday, and now we are seeing a pullback. The UK manufacturing sector produced its strongest report in six years but it still couldn’t prop up the pound.
EUR/USD is marginally lower even though the eurozone registered some impressive manufacturing reports this morning. Italy, Spain and Germany all saw strong manufacturing levels, while the French manufacturing report jumped to 57.7 – a seven year high.
At 3pm (UK time) the US will announce the ISM manufacturing, and traders are expecting a reading of 58.4, and that would be down from the October reading of 58.7.
We are expecting the Dow Jones to open down 30 points at 22,242, and we are calling the S&P 500 down 7 points at 2641.
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