Forex News

The Caixin China General Services PMI declined to 52.1 in November 2021 from 53.8 in the prior month, pointing to the third straight month of expansion in the service sector but the weakest pace in the sequence, amid a rise in COVID-19 infections. New orders expanded at the slowest pace in three months and only marginal overall, and export sales remained mild, while employment rose for the third month in a row.

The AIB Ireland Services PMI was down sharply to a seven-month low of 59.3 in November 2021 from 63.4 in October, signaling the slowest rise in Irish services output since April, amid rising COVID-19 case numbers.

US stock futures drifted lower on Thursday evening, as markets remained driven by Omicron variant-related news and its economic impact, as well as by expectations of faster tapering and earlier rate hikes. Dow Jones futures inched down 0.1%, while S&P 500 and Nasdaq 100 futures each fell about 0.2%. In the regular session, US stocks staged a broad recovery rally led by the energy, industrials, real estate and financials sectors, with investors taking advantage of the dip to buy cyclical names tied to the economic recovery. On the data front, initial jobless claims came lower than expected at 222,000 last week, while investors await the November jobs report due on Friday. The market now nears the end of a roller-coaster week, as volatility remains high amid rising Omicron cases and a less accommodative Fed, further clouding the outlook.

The IHS Markit Singapore PMI was down to a five-month low of 52.0 in November 2021 from 52.3 a month earlier. Still, this was the twelfth straight month of growth in the private sector following the gradual easing of COVID-19 curbs and the opening of vaccinated travel lanes. While buying activity dipped amid delivery delays and employment fell for the fourth month in a row on the back of a further accumulation in backlogged work, output rose for the twelfth month running and new orders continued to grow at a strong rate. Also, the growth of foreign demand surged to a record rate, suggesting better global demand having been witnessed. Meantime, the rate at which lead times lengthened eased from October. On prices, input costs continued to climb at a rapid rate, though one that slowed for the second month in a row; while output price inflation eased from the October record. Lastly, confidence moderated notably as some firms remained concerned with lingering pandemic disruptions.

The au Jibun Bank Japan Composite PMI was at 53.3 in November 2021, compared with a flash reading of 52.5 and after a final 50.7 in October. This was the second straight month of increase in private sector activity and the strongest pace since October 2017 as COVID-19 cases receded and curbs were eased further. Growth was led by the quickest rise in services activity for over two years while manufacturing output growth hit a seven-month high. New orders grew solidly, and at the strongest since October 2018, with service providers noting the sharper upturn, recording the fastest increase in new business since March 2019. This contributed to the first rise in private sector backlogs since April. Meantime, employment rose the least in four months, despite evidence of increasing pressure on existing capacity. Firms in both sectors reported a further rapid rise in average cost burdens in November, with aggregate input prices rising at the sharpest pace since August 2008.

The IHS Markit Hong Kong SAR PMI rose to a three-month high of 52.6 in November 2021 from 50.8 in the previous month. This was the tenth straight month of growth in the private sector amid low COVID-19 case counts, with domestic demand and output expansions both picking up their paces. Also, firms raised their quantity of purchases and inventory levels rose in tandem. Meantime, employment remained subdued amid a further accumulation in backlogged work, while foreign sales fell faster due to weak demand from both mainland China and abroad. Lead times continued to lengthen for the tenth time, amid disruptions to shipping and issues with power supply in China. On the cost side, price pressures persisted with input prices rising on the back of higher purchase costs and wages, and firms continued to pass on these cost burdens to their clients. Finally, sentiment was at a three-month high as firms viewed the stabilization of the pandemic as beneficial for the recovery to continue.

The au Jibun Bank Japan Services PMI was revised upward to a 27-month high of 53.0 in November 2021, compared with a preliminary figure of 52.1, and after 50.7 in the previous month. This was also the second straight month of expansion in services activity, buoyed by easing COVID-19 restrictions and soaring vaccination rates. Output grew faster, while new orders returned to growth for the first time since January 2020, and the fastest since March 2019 on the back of a rebound in export sales. Meanwhile, the job shedding was seen for the first time in four months. On the cost side, input price inflation quickened to reach its highest since August 2008, amid higher raw material and staff costs. Meantime, output price inflation eased to a three-month low, as firms offered in price discounting to stimulate sales. Looking ahead, business confidence improved to a record high due to hopes that a further dissipation of the pandemic would trigger a boost in both domestic and external demand.