Marc Chandler submits:The US dollar is consolidating this week’s gains in choppy activity. Stronger than expected eurozone GDP (1.0% quarter-over-quarter) failed to lift the euro as much as one might have expected. It appears the market quickly realized this is as good as it gets. Heightened tensions remain evident in the European debt markets and this may also be helping to limit euro upticks.
After a blistering October for stocks, drunk on yet another month of record liquidity by the cental planners, November's first overnight trading session has been quiet so far, with the highlight being the release of both official and HSBC China PMI data. The official manufacturing PMI rose to 51.4 in October from 51.1 in September. It managed to beat expectations of 51.2 and was also the highest reading in 18 months. October’s PMIs are historically lower than those for September, so the MoM uptick is considered a bit more impressive.
BEIJING — China warned on Wednesday of a “grim” outlook for trade after a surprise fall in June exports, raising fresh concerns about the extent of the slowdown in the world’s second-largest economy and increasing the pressure on the government to act.
European shares turned down and the dollar slipped from a three-year high on Wednesday after weak data from China and a rating downgrade of Italy deepened caution pending the Federal Reserve’s latest minutes.
World oil prices rose on Wednesday, before the latest US energy report, with traders on tenterhooks over the eurozone debt crisis and simmering tensions on the Korean peninsula, analysts said.Brent North Sea crude for delivery in January added 46 cents to 83.71 dollars a barrel in London morning trade.New York's main contract, light sweet crude for January, firmed 32 cents to 81.57 dollars.Prices fell on Tuesday amid a broader market sell-off as traders feared that a spike in tensions between North and South Korea could impact global trade.