Eurozone private sector growth accelerates despite weak German performance – business live

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Labyrinthine Covid Reminder System Is The Real Reason For The Delays


Hello and welcome to our continued coverage of the global economy, financial markets, euro area and business.
The stock markets have been on a rollercoaster ride this week as investors try to figure out what the new variant of Covid Omicron means for the pandemic and the markets going forward.

US stocks rebounded on Wall Street yesterday on expectations that Omicron is more contagious but less deadly (after the WHO said early indications are mostly mild), but volatility remains high. The Dow Jones closed up 1.8%, the S&P 500 up 1.4% and the Nasdaq up 0.8%. Meanwhile, Asian indices are mixed: Hong Kong’s Hang Seng is down 0.4% while Japan’s Nikkei is up 1% and the Shanghai Composite Index is also up nearly 1%. .

European markets are expected to open higher and the pan-European Stoxx 600 is still on track for a modest weekly gain despite a tough week.

Oil prices rise, extending yesterday’s gains after the OPEC oil cartel and its allies stuck to plans to pump more than 400,000 additional barrels of oil per day from January. In an unusual move, however, oil producers agreed to revisit the offer before the next scheduled meeting, leaving the door open to a production drag if the Omicron variant results in further restrictions on travel and trade.

Brent crude, the global benchmark, rose 2% or $ 1.39 to $ 71.06 per barrel, while US light crude is ahead 2.1% to $ 67.92 per barrel.

The latest Caixin PMI survey of the service sector in China showed slower growth last month, with the overall business activity index dropping from 53.8 in October to 52.1 in November. This is the third month of expansion. Higher costs for labor, raw materials and energy have pushed firms’ input costs more sharply to a six-month high, prompting them to raise their own prices.

The composite survey, which includes industry and services, fell to 51.2 from 51.5, indicating a slight slowdown in the growth of Chinese companies.

IHS Markit PMI™
(@IHSMarkitPMI)

More moderate increase in service activity observed in #China in November with the #SME at 52.1 (Oct: 53.8) against a backdrop of slower sales growth. Input costs have increased at a faster rate. Read more: https://t.co/Ux9VyOxOTj pic.twitter.com/1froKOXwGV

December 3, 2021

we will have PMI readings for Continental Europe and UK this morning, and economists expect modest improvements in Italy, France and Germany’s PMIs to 54.5, 58.2 and 53.4 respectively, although the improvements may prove to be temporary, in light of the recent surge in Covid-19 infections and renewed restrictions across Europe, even before Omicron was identified. UK services PMI is expected to be 58.6 and US services to 57.

Today’s highlight is the November US employment data, especially after Federal Reserve Chairman Jerome Powell’s surprise hawkish tilt earlier this week that raised expectations that the Fed will cut back on its economic stimulus program more quickly. Economists expect 550,000 more jobs to have been added to the economy. The unemployment rate is expected to fall further to 4.5%. Wage growth will also be watched closely, with evidence from retailers and some other large U.S. employers that they have to pay for staff.

Michael Hewson, chief market analyst at CMC Markets UK, examined this in detail.

The October payroll report helped reaffirm the Federal Reserve’s move days before it kicked off its $ 120 billion-per-month asset purchase program. 531,000 new jobs were added to the US labor market in October, while we also saw a decent upgrade through September from 194,000 to 312,000.
The unemployment rate fell to 4.6% from 4.8% while the participation rate remained unchanged at 61.6%. Regardless of the measure, the numbers were positive and with rising wages, job growth is expected to accelerate as the end of the year approaches, especially around the holiday season, when hiring trends tend to accelerate.
This is already confirmed by the number of continuing claims which are now only 200,000 above what they were before the pandemic.
With recent US economic data showing decent levels of resilience, the conversation on tapering has shifted towards the speed and level of withdrawal of stimulus measures … We also have several policymakers arguing that the central bank needs to go more fast, which means that today’s November payroll report has the potential to quickly move this discussion forward until the Fed meeting later this month, if we see a report. on employment just as strong today.

Agenda

  • 8:15 GMT – 9:00 GMT: Markit Composite and services PMI for November for Spain, Italy, France, Germany, euro area
  • 8:30 GMT: ECB President Christine Lagarde speaks
  • 9:30 am GMT: UK Markit / CIPS Composite and Services PMI for November
  • 10am GMT: Eurozone retail sales for October (forecast: 0.2%)
  • 11am GMT: Bank of England policymaker Michael Saunders speaks
  • 11am GMT: Ireland’s GDP for Q3
  • 1:30 p.m. GMT: US non-farm payroll for November (forecast: 550,000)
  • 3 p.m. GMT: US ISM Non-Manufacturing PMI for November



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