Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 76% of retail investor accounts lose money when trading spread bets and CFDs with this provider. You should consider whether you understand how spread bets and CFDs work, and whether you can afford to take the high risk of losing your money.
Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 76% of retail investor accounts lose money when trading spread bets and CFDs with this provider. You should consider whether you understand how spread bets and CFDs work, and whether you can afford to take the high risk of losing your money.

Early Morning Call: China PMIs fall to 7-month lows amid zero-Covid policy

Manufacturing and services activities in China shrank further in November to seven-month lows.

Equity market overview

Equity markets were mixed overnight in the APAC region. The Nikkei fell 0,21, while ASX 200 rose 0.43%.

In Japan, industrial production declined by 2.6% in October, after a 1.7% drop a month earlier and compared with market forecasts of a 1.5% fall. This was the second straight month of decreases, mainly weighed down by production machinery, electronic parts, chemicals and medicine. On a yearly basis, industrial output rose by 3.7% in October, much lower than a 9.6% gain recorded in September.

As a consequence of China's zero-Covid policy, manufacturing and services activities shrank further in November to seven-month lows. NBS manufacturing PMI came in at 48 in November, after 49.2 in the previous month. Economists anticipated a PMI of 49.0.

Non-manufacturing PMI, which looks at service sector activity, fell to 46.7 from 48.7 the previous month, also the lowest reading in seven months.

Foxconn is offering bonuses to its workers to encourage them to return to work, as Apple could suffer a shortfall of iPhone's for the Christmas season. Analysts estimate that Apple could lose between $5 billion and $8bn in revenue.

In Europe, equity markets open higher.

At 10am watch out for Eurozone CPI. Economists expect a 10.4% increase in November year-on-year (YoY), a slight deceleration after the 10.6% recorded in October. The core inflation rate in expected to remain at 5%.

Yesterday, Germany's CPI rose by 10% in November YoY, missing expectations of a 10.4% increase, and below the 10.4% recorded in October.

In the US, investors await ADP employment change data. Economists anticipate the creation of 200,000 jobs in the US private sector. At 13.30 the final reading of third quarter (Q3) gross domestic product (GDP) is anticipated to show a 2.7% quarter-on-quarter expansion.

And at 3pm, we expect pending home sales. October consensus is of a 5% fall month-on-month (MoM), following a 10.2% drop in September.

Elsewhere on the equity market, Hewlett Packard Enterprise reported, after market close yesterday, quarterly adjusted earnings of 57 cents per share, in line with expectations. Revenue rose 7% to $7.9 billion, beating analysts’ expectations of $7.37bn.

The company forecast fiscal first quarter (Q1) sales of between $7.2bn and $7.6bn, while analysts forecast on average $7bn.

Among US earnings today is Salesforce. Analysts expect earnings of $1.22 per share on revenue of $7.83bn. Also watch for Snowflake. The market forecasts a loss of 63 cents per share of revenue of $539 million.

Commodities

OPEC+ will hold its meeting on 4 December virtually rather than in person, which according to analysts signals little likelihood of a policy change.

The focus is now on the pending European Union deal on a price cap on Russian oil ahead of a 5 December deadline imposed by the bloc for a full embargo on purchases of Moscow's seaborne crude.

In October, OPEC+ agreed to cut output by two million barrels per day, equal to 2% of global supply, effective until Decemeber 2023.

Crude oil inventories fell by another 7.85 million barrels, according to the API, after falling by 4.2 million barrels the previous week. This is despite the release of 1.4 million barrels from the US Strategic Petroleum Reserves.

Gasoline stocks rose by 2.85 million barrels, while distillate inventories rose by four million barrels.

This information has been prepared by IG, a trading name of IG Markets Limited. In addition to the disclaimer below, the material on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients. See full non-independent research disclaimer and quarterly summary.

Seize your opportunity

Deal on the world’s stock indices today.

  • Trade on rising or falling markets
  • Get one-point spreads on the FTSE 100
  • Unrivalled 24-hour pricing

See opportunity on an index?

Try a risk-free trade in your demo account, and see whether you’re on to something.

  • Log in to your demo
  • Try a risk-free trade
  • See whether your hunch pays off

See opportunity on an index?

Don’t miss your chance – upgrade to a live account to take advantage.

  • Get spreads from one point on the FTSE 100
  • Trade more 24-hour indices than any other provider
  • Analyse and deal seamlessly on smart, fast charts

See opportunity on an index?

Don’t miss your chance. Log in to take your position.

Live prices on most popular markets

  • Equities
  • Indices
  • Forex
  • Commodities
website terms and agreements. Prices are indicative only. All share prices are delayed by at least 15 minutes.

" edit-mode="false" style="--live-prices-table-rows:5" >


Prices above are subject to our website terms and agreements. Prices are indicative only. All share prices are delayed by at least 15 minutes.

Prices above are subject to our website terms and agreements. Prices are indicative only. All shares prices are delayed by at least 15 mins.

Plan your trading week

Get the week’s market-moving news sent directly to your inbox every Sunday. The Week Ahead gives you a full calendar of upcoming economic events, as well as commentary from our expert analysts on the key markets to watch.


For more info on how we might use your data, see our privacy notice and access policy and privacy webpage.

You might be interested in…

Find out what charges your trades could incur with our transparent fee structure.

Discover why so many clients choose us, and what makes us a world-leading provider of spread betting and CFDs.

Stay on top of upcoming market-moving events with our customisable economic calendar.