The Before 24..
Global Market news for your next 24..

01.03.12

The View:
Global markets experienced a bit of New Year cheer choosing to absorb the positive and shrug off the negative.

Asia:
Asian Markets railed in their Tuesday morning session on news of China’s better than expected PMI. China’s December PMI came in at 50.3 beating the 49.1 expected by analyst. The numbers showed a swing in manufacturing from contraction to light expansion. Also aiding the rally gains posted by the European markets on Monday. The Hang Seng rose 2.4% to 18877.41. The Nikkei and the Shanghai markets are closed for New Year holiday.

Europe:
European markets rallied modestly on Friday ending 2011 on a high. Overall the European markets were negative as the sovereign debt crisis and all the jitters it caused have taken a toll on the equity markets.
European markets rallied on their first trading day of 2012. A better than expected purchasing managers index from Germany helped boost the European Stock markets into the green.
Europe was led by German stocks which rose after the counties manufacturing purchasing managers index rose to 48.1 in December from 47.9 in Germany providing investors a small glimmer of hope in the manufacturing sector. Bond yields for Europe largely stayed the same including Yields for Italy’s debt which were up two basis points to 6.88%.
Spanish stocks rose despite a warning from the government ton Friday that they would miss their budget deficit target by a winder margin then first anticipated.
European markets were mostly in the green in their early Tuesday morning trading despite the news that the Euro zone manufacturing PMI increased to 46.9 in December however it was still the fifth month of contraction. Instead the markets decided to focus on the German’s unemployment rate for December, which was came in at a record low.
The Euro still remains under pressure against the dollar holding around the 1.29 level.

US:

US equity markets closed down on the final trading day of 2011. The Dow fell 69.48 points ending the year up 5.53% for the year. The S&P dropped 5.42 points close to flat for the year. The Nasdaq closed down on Friday losing 8.59 points and ending the year negative for the first year since 2008.
Commodities markets closed mostly higher on Friday. Gold rose $25.90 to end at $1566.80 while Oil fell $.82 to end the session at $98.83 a barrel.
Natural Gas prices on Friday closed at a two-year low as a warmer winter causes demands to plunge Food commodities closed out 2011 higher. Grains such as wheat, corn and soybeans were higher on a weaker dollar and continued dry weather in Argentina causing demand to strengthen.
Treasury yield were down on the last day of the year. The 10 year yield closed at 1.878% as investors still remain shaky which direction they think the market will go. Treasury holders over the last year saw a gain on their investment. The 10 year for example earned it’s holders a 17% return in 2011.