Euro and Asia rise on Chinese manufacturing

Euro/USD rose to 1.3048 and Asian stocks jumped to a nine-month high on further signs of a stabilizing Chinese economy boosted investor’s risk appetite. China’s vast manufacturing sector quickened in November for the first time in 13 months. HSBC bank’s Purchasing Managers’ Survey, PMI, rose to 50,5. A further evidence that the Chinese economy is picking up after quarters of slowing growth. China’s official PMI was even higher at 50,6. An official PMI for the non-manufacturing sector reached 55,6 led by construction services.
The upbeat Chinese manufacturing data helped the Euro reach a six-week high against the dollar. The Euro was also strengthened by Angela Merkel’s careful remarks that Germany, in a medium, longer term perspective, might consider to write off Greek’s debt if the country succeeds in getting its house in order.
The rhetoric on the “fiscal cliff” increased during the weekend when Democrats and Republicans went on the air to trade accusations on whom are mostly to blame for the budget stalemate. This also helped the euro. In spite that there still seem to be a huge distance to cross before any budget deal sight is in sight, markets nevertheless seem to have discounted a compromise. All asset classes posted gains in November with higher appetite for securities. Security markets except the Shanghai composite rose.
The Japanese Nikkei continues to rise on a lower yen and expectations for monetary easing after the parliamentarian elections in mid-December. The dollar steadied at 82,40 yen not far from the 82,84 yen touched on November 22. Speculators have over the last weeks boosted a short yen position which was at its highest since May 2007.
US, NYMEX crude and Brent futures are inching up at 89,16 and 111,57 respectively. Copper gained 0,3 percent to USD 8018 a metric ton. Gold is slightly up to 1719 on a weaker dollar. The DXY dollar index against a basket of major currencies are down 0,2 percent.
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