Rise and shine everyone.

The week is finally coming to an end, and we have a bunch of PMIs released today.

Japan’s preliminary PMIs tell an interesting story—manufacturing remains in contraction for a fifth straight month, but services have turned positive again, marking a return to expansion after a brief dip. The 10-year JGB yield briefly touched 1.10%, the highest since July, before pulling back to 1.08%. Japan also released their inflation numbers for October that came in largely in line with expectations, comfortably holding above the Bank of Japan’s 2% target. This could largely support a rate hike by the BoJ in December.

Australia saw a challenging print as November’s preliminary manufacturing PMI showed a 10th consecutive month of contraction. Services, too, dipped into contraction, marking the first decline in 10 months. These signals suggest Australia may be facing a slow stretch ahead.

The latest PMI data out of Europe shows weakening economic conditions. Manufacturing continues its downward spiral, with Germany and France feeling the most pressure. The Euro is now at a 23-month low. German GDP was revised lower for Q3, adding to the woes for the Eurozone.

The US dollar strengthened, bolstered by weaker-than-expected European PMIs and broader risk-off sentiment. This resulted in Bitcoin pulling back from its $100K test, retreating to $99.5K, as the dollar’s rally dampened the bullish momentum that had been pushing the cryptocurrency higher

Gold and WTI crude have continued their upward trajectory, reaching levels not seen since early November. This trend reflects an ongoing risk-off sentiment with a focus on safe havens and energy markets.

In corporate news, Adani Enterprises continues to feel the heat with stock losses of about 20% yesterday following bribery charges against its founder. The sell-off has continued in pre-market trading, with Adani Green Energy and Adani Energy Solutions taking a 10% hit.

The WSJ is buzzing with speculation that Kevin Warsh may be the front-runner for Treasury Secretary in a second Trump administration, potentially positioning him to replace Jerome Powell as Fed Chair in 2026.

The geopolitical landscape remains steady, with focus shifting to Russia’s new weapons in Ukraine and the ICC’s arrest warrant for Israeli PM Netanyahu. Hungary extends an invitation to Netanyahu despite the growing international tensions.

US PMI numbers are set to be released later in the day.

Chart of the Day

12-month Forward P/Es of major markets, with Standard Deviation Bands. (Source: Barclays)

Calendars

(news taken from Reuters, FT, Bloomberg; Calendar from Trading Economics)