China Services Sector Growth Reaches 16 Month High

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From Trading Economics: The Caixin China Services PMI rose to 53.1in November of 2016 from 52.4 in October while market expected 52.7. It was the fastest growth since July 2015, driven by an increase in new orders and employment while business expectations eased to a 13-month high. Unfinished workloads at services companies rose for the second month running while price pressures were relatively muted. Despite rising to a 21-month high, the rate of cost inflation across the service sector was only modest and weaker than the historical average. Services PMI in China averaged 52.31 Index Points from 2012 until 2016, reaching an all time high of 54.70 Index Points in May of 2012 and a record low of 50 Index Points in July of 2014.

Market Opening Wrap

In Asian Equity Markets Japan's Nikkei index fell on Monday after Italian Prime Minister Matteo Renzi's defeat in a constitutional reform referendum gave investors an opportunity to sell into a market that had rallied to 11-month highs late last week. The Nikkei lost 0.8 percent to 18,274.99, its lowest closing level since Nov. 22. The broader Topix and the JPX-Nikkei Index 400 both fell 0.8 percent to 1,466.96 and 13,156.93, respectively. MSCI's broadest index of Asia-Pacific stocks outside Japan eased 0.4 percent. China's CSI 300 index tumbled 1.6 percent. Hong Kong's Hang Seng index lost 0.25 percent. New Zealand stocks ended the day 0.7 percent lower.

In Currency Markets the euro tumbled in early Asian trade on Monday after Italian Prime Minister Matteo Renzi said he would resign after conceding defeat in a referendum over his plan to reform the constitution. The euro fell as much as 1.4 percent to $1.0505, before recovering a bit to $1.0555. The euro slid as much as 2.1 percent to 118.71 yen, but pared some of the losses to trade down 1.2 percent at 119.79 yen. Against the yen, the U.S. currency was little changed at 113.59. The New Zealand dollar, which earlier weakened almost 1 percent to $0.707 after Prime Minister John Key unexpectedly announced his resignation on Monday, recovered a little to trade at $0.7107. The dollar index jumped 0.6 percent to 101.38.

In Commodities Markets oil prices fell by one percent on Monday as a higher U.S. rig count unsettled markets amid nagging concern that output cuts, planned as part of concerted action between producer club OPEC and Russia, might not be as big as initially anticipated. Brent crude futures were trading at $53.89 per barrel, down 57 cents, from their last close. West Texas Intermediate crude futures were at $51.49 a barrel, down 1 percent. Gold edged up in early Asian trade on Monday as jitters over the resignation of Italian Prime Minister Matteo Renzi after losing a referendum on constitutional reform induced safe-haven buying. Spot gold was up 0.3 percent at $1,180.20 an ounce.

In US Equity Markets  stocks ended little changed on Friday after a payrolls report did little to recast expectations for an interest rate hike from the Federal Reserve this month and bank stocks cooled to round out their fourth straight week of gains. The S&P 500 gained 0.04 percent, to 2,191.95 and the Nasdaq Composite added 0.09 percent, to 5,255.65. Goldman Sachs, off 1.4 percent, fell for the first time in four days, while Bank of America, off 1.3 percent, Citigroup, down 2.2 percent, and Wells Fargo lost 1.4 percent as the top drags on the S&P. Starbucks  fell 2.2 percent to $57.21 after the coffee chain operator said Howard Schultz would step down as chief executive officer.

In Bond Markets  Japanese government bond prices rose on Monday as investors sought safer assets after Italian Prime Minister Matteo Renzi said he would resign following a stinging defeat on constitutional reforms.  The price of 10-year JGB futures rose 0.10 point to 150.58. The benchmark 10-year cash JGB yield fell 0.5 basis point to 0.030 percent. The 20-year JGB yield fell 0.5 basis point to 0.470 percent while the 30-year yield lost 2.0 basis points to 0.575 percent. The 10-year U.S. Treasuries yield fell off Thursday's 1 1/2-year high of 2.492 percent to 2.347 percent in Asia on Monday.

Source: Institute of Trading and Portfolio Managment