Today is the day of the manufacturing PMI reports - BBH

Research Team at BBH, suggests that outside of the oil story, the interest today is in the manufacturing PMI reports and generally speaking, the PMIs suggest the manufacturing sectors are finishing the year in good shape. 

Key Quotes

“Japan's rose to 51.3 from 51.1 of the flash reading.  It is still off slightly from October's 51.4, but it is well above the Q3 average of 49.7 and the year's average through October of 49.5.”

“China's official manufacturing PMI rose to 51.7 from 51.2 and well above market expectations and more than a two-year high.  The details were constructive, with increases in new orders and new export orders.  Input prices rose to 68.3 from 62.6, and this will fan ideas that the PBOC will allow the month-end pressure in the money market (such as the one-week repo rate) to carry over.  The service PMI rose to 54.7 from 54.0, which is also a two-year high.”

“The Eurozone manufacturing PMI was in line with the flash report of 53.7, though prices rose more than the preliminary report suggested (51.4 from 51.1).  The tick down in Germany's reading to 54.3 from 54.4 (flash) was offset in full by the French improvement to 51.7 from 51.5.  Spain offered a big positive surprise with a 54.5 reading after 53.3 in October.  It was at 51.0 over the summer.” 

“Italy also surprised on the upside.  The 52.2 reading compares with 50.9 in October and expectations for 51.3 now.  I t is the strongest since June. Separately, Italy reported the unemployment rate ticked lower (11.6% from 11.7%), even though it lost 30k jobs. Eurozone's October unemployment rate slipped to 9.8% from a revised 9.9% in September.”