From the UK, yesterday, Services PMI data was released. UK service providers looked set to end 2015 on a positive note, according to the latest PMI survey data from Markit and CIPS. The Business Activity Index signalled growth of service sector output in November, taking the current spell of expansion to one month short of three years. The Index rose for the second month running to 55.9, from 54.9 in October, signalling the fastest rate of growth since July. Analysts were predicting smaller increase to 55.1. The average for the fourth quarter so far matches that seen over the third quarter as a whole (55.4). In comparison, the Index has trended at 55.2 since its inception in July 1996.
In the US session
Unemployment Claims and Non-Manufacturing PMI figures were released. In the week ending November 28, the advance figure for
seasonally adjusted initial claims was 269,000, an increase of 9,000 from the previous week's unrevised level of 260,000. This was in line with market expectations. The 4-week moving average was 269,250, a decrease of 1,750 from the previous week's unrevised average of 271,000.
The Non-Manufacturing PMI registered 55.9 percent in November, 3.2 percentage points lower than the October reading of 59.1 percent. Analysts were anticipating decline to 58.1. This represents continued growth in the non-manufacturing sector at a slower rate. According to the NMI, 12 non-manufacturing industries reported growth in November. After a strong month of growth in October, the non-manufacturing sector’s rate of growth slowed in November. Most respondents are still positive about business conditions.
With no major data releases from the UK tomorrow, we can expect a bit steadier morning part of the session, with traders still weighing on recent UK data. Focus of the US session will be on NFP and Trade Balance figures. Analysts are forecasting increase by 201,000 in number of employed, while Unemployment Rate should remain unchanged at 5.0%. Trade Balance deficit should slightly narrow to $40.6 billion.
Figures to watch:
Non-Farm Employment Change/Unemployment Rate (Friday 14:30)
Trade Balance (Friday 14:30)
