The market movers published in the past week have affected both the new and the old Continent, from data on manufacturing PMI to the unemployment rate.
The news that has dragged more the markets, however, can be attributed to the agreement of the OPEC to cut 1.2 million barrels per day in oil production.
Let’s go step by step. Here are a few market movers published for the Euro area.
Monthly output price index stood at + 0,8%, compared with the consensus at + 0,2% and the previous data at + 0,1%. On annual basis, however, the index in October marked 0,4%, a smaller decline than the one emerged from the previous survey (-1,5%) and from analysts’ estimates (-1,0%).
The PMI manufacturing index has instead met analysts’ forecasts in November and stood at 53,7 and this is in line with the data of the previous month.
Finally, the unemployment rate in the Eurozone slightly decreases in October. It was equal to 9,8%, against an expectation of 10%.
As for the other hand, United States data on unemployment in November was a surprise. The US unemployment rate has in fact amounted to 4,6% and showed a significant decline compared with the expectations and a previous data of 4,9%.
The PMI manufacturing index, although, has exceeded the expectations of analysts in November. Last month, the index of purchases directors of the US manufacturing sector stood at 54,1, while expectations and previous data were 53,9.
The latest figure of the week for the United States was, of course, the Non Farm payrolls in November that exceeded analysts’ expectations. Last month the new jobs flooded in the US economy were 178.000, against 161.000 of the previous month.
The dollar, as you can imagine, continued his run-up but this time for a different reason than the election of the new President of the United States, but thanks to the decision taken by the major oil producing countries.
The spot rate of the US dollar has approached its last week at an altitude of 102, all-time maximum after OPEC has ended the long-awaited meeting with an agreement to cut the oil production.
The OPEC decision to give a significant cut in oil production for the first time in eight years has boosted the price of crude oil. WTI has reached $ 51,47 per barrel (+ 4,2%) and Brent has reached $ 54,14 (+ 4,4%).
The decision was taken mainly by the top three manufacturers of the group (Saudi Arabia, Iran and Iraq), but the agreement was also joined by other countries such as Russia, which are not part of the organization.
As for the major metals like gold and silver, they have experienced a positive first half of the year before falling down with Donald Trump election and the rise of the US dollar.
Currently the silver price is falling by 0,60% to $ 16,360 and the gold is losing 0,46% and trading at $ 1.167.
Starting from the beginning of November, the price of gold collapsed reaching the minimum of February 2016.
If the US dollar will continue to ride the wave of success, for gold there is no escape. We just have to wait for the imminent decision on interest rates at next Federal Reserve meeting.