U.S. Indices ultimately finished the first session of December trading lower. The session was choppy with Equity F.utures sold overnight alongside caution in APAC trade in response to soft China PMIs. Pressure extended once Europe arrived, with the DAX lagging amid a downward revision to the German manufacturing PMI. However, around the opening bell, the risk tone in equities started to improve throughout the afternoon, before fading into the closing bell. T-notes were sold across the curve in a steeper fashion. The downside tracked JGBs overnight following hawkish commentary from Bank of Japan Governor Ueda, while rising energy prices also weighed. However, sharp selling occurred during US trade amid a slew of corporate supply, namely Merck’s (MRK) USD 8 billion 8-parter, which led to rate lock selling. The US highlights included the ISM Manufacturing PMI, which surprisingly fell alongside a drop in New Orders, while Prices Paid accelerated, and employment dropped. Meanwhile, over the weekend, US President Trump said he knows who he is going to pick for Fed Chair Powell’s successor, and Hassett said he would accept the job if it were offered to him. Energy prices were higher after Ukraine continued its attacks on Russian oil facilities, tensions increasing between the US and Venezuela, while OPEC+ held output steady over the weekend, as expected. In FX, the Dollar was flat while the Canadian Dollar lagged on weak energy prices and Japanese Yen outperformed on the Ueda commentary, which touted a December rate hike from the BoJ. The US ISM Manufacturing PMI fell to 48.2 from 48.7, despite expectations for a rise to 49.0 – remaining in contractionary territory for the ninth consecutive month. Within the report, however, the overall economy continued in expansion for the 67th month (Manufacturing PMI of 42.3 or above generally indicates expansion in the overall economy). New Orders dropped to 47.4 from 49.4, showing the third straight month of contraction. The Production Index returned to expansion, rising to 51.4. Meanwhile, supplier deliveries indicated faster delivery performance after three consecutive months (and 14 of the previous 16 months) in slower territory, falling to 49.3 from 54.2. Inventories rose to 48.9 from October’s 45.8. Meanwhile, the Prices Paid component rose to 58.5 from 58.0, despite expectations for a fall to 57.0 (some had anticipated 59.0), showing price increases accelerated slightly in November vs October. The report notes, “The Prices Index reading continues to be driven by increases in steel and aluminium prices that impact the entire value chain, as well as tariffs applied to many imported goods. ” The employment index fell to 44 from 46, posting its tenth consecutive month of contraction, with 36 of the last 43 months contracting. The report noted that “For every comment on hiring, there were 3.4 on reducing headcounts, equaling the ratio in October. Companies continued to focus on accelerating staff reductions due to uncertain near- to mid-term demand. The main head-count management strategies remain layoffs and not filling open positions.” Elsewhere, both Oil and Gold closed higher by 1.5% and 0.5% respectively.
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For anyone following my Platinum Service it was made 230 points yesterday on the first trading session for December after ending the month of November with a gain of 4542 points, after ending October with a nice gain of 5110 points after closing September with a gain of 3774 points while ending August with a gain of 3362 points after closing July with a gain of 3753 points after closing June with a gain of 3530 points, having closed May with a gain of 3606 points, after closing April with a gain of 7685 points after closing March with a gain of 2254 points while closing February with a gain of 4180 points. January ended with a gain of 2768 points while 1997 points were gained in December. October ended with a gain of 2179 points, after closing September with a gain of 4402 points, following a loss of 301 points in August. July gained 1908 points while June saw a gain of 2074 points. The Platinum Service made a record 9619 points in October 2022. Since I started this New Platinum Service in June 2015 it has averaged a monthly gain of over 2300 points. I have a YouTube Channel which contains recent interviews I have given This can be viewed by clicking HERE Please subscribe to this for new interview notification
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