Yesterday's session was marked by UK Manufacturing PMI data. The UK manufacturing sector maintained its positive start to the final quarter, with November seeing growth ease only moderately from the recent peak attained in the prior survey month. The seasonally adjusted Markit/CIPS Purchasing Manager’s Index posted 52.7 in November, down from October’s 16-month high of 55.2 (originally reported as 55.5). Analysts were anticipating smaller decrease to 53.7. The headline PMI has remained above the neutral 50.0 mark in each month since March 2013. Manufacturing production expanded for the thirtysecond successive month.
Also, BoE released its Financial Stability Report. BoE Governor Carney said that higher capital costs ultimately passed to borrowers and that no new wave of capital regulation coming. He added that UK banks are most of the way there on capital, well ahead of 2019 deadline.
However, global growth remains subdued and global environment is unforgiving, while public, private balance sheets remains stretched and capital buffer is not designed to retrain credit growth.
US session was marked by ISM Manufacturing PMI figures. The November PMI registered 48.6 percent, a decrease of 1.5 percentage points from the October reading of 50.1 percent. Analysts were forecasting increase to 50.6. Ten out of 18 manufacturing industries reported contraction in November, with lower new orders, production and raw materials inventories accounting for the overall softness in November.
Tomorrow's session will bring UK Construction PMI data. A decline to 58.4 is forecasted. In the US session ADP job figures are scheduled for a release. Analysts are predicting increase by 191,000.
Figures to watch:
Construction PMI (Wednesday 10:30)
ADP Non-Farm Employment Change (Wednesday 14:15)
