Home > Resource Hub > Daily Market News > Markets are insecure due to latest news

Markets are insecure due to latest news

Markets are insecure due to latest news

The major central banks coordinated moves to inject more liquidity in the global banking system has set the tone for markets today hence risk is back on (tentatively), overnight markets have followed in the wake of European and US indices, and we see little to change the prevailing mood. However we remain of the view that the addition of liquidity is nothing more than a sticking plaster for an ongoing ailment. The current mood could easily be reversed by risk events in the eurozone area, particularly with French President Sarkozy expected to speak today, shedding more light on the joint proposals discussed with Germany on Treaty change.

In that respect, the release of Chinese PMI data overnight has to a large extent been ignored by the market with the data slipping below the breakeven 50 level, printing 49.0 for November. It has to be noted though to some extent the market had priced in a lower reading (48) hence the muted reaction.

In the wake of China’s PMI data Europe and U.S. also sees the release of Manufacturing PMI numbers and along with the Chinese number we would expect these to be as un-encouraging as China’s. We would expect Eurozone PMI Manufacturing survey to remain unrevised at 46.4 when the final estimate is released, that still marks a slowdown from October’s 47.1 reading.

In the UK we look for both the PMI manufacturing and construction indices to stabilise in November, but it looks as if manufacturing output will still contract, due in part to excess inventories and weak demand conditions.

The US sees along with the release of ISM Manufacturing data, Initial Jobless claims, consumer comfort index and Construction spending. Indeed the release of strong data yesterday bodes well following the release of surprisingly strong Chicago PMI, ADP and pending home Sales data, hence market expectations are for a strong ISM number, while Jobless claims should continue to maintain its downward trend (consensus is for 390K from 393K previously).

Overall, sentiment remains buoyed however nothing should be read into it; a sharp reversal could be witnessed as the ongoing Eurozone sovereign debt crisis continues to dominate market sentiment. The lack of agreement between Eurozone governments looks set to continue, which will push yields higher and weigh on the single currency.

What does this all mean for me? Well buying your EUR, USD, AUD or any other currency at the wrong time could cost you a fortune. There is no crystal ball but Currency UK can give you the information you need to make an informed decision.

Currency UK will then offer you the best exchange rates available and ensure that you subsequent international transfers are handled as quickly and as efficiently as possible.

Contact us now on +44 (0)20 7738 0777 or click here.

Share this case study
Set yourself up in minutes, make payments the same day: it’s free, easy and without obligation.