North American traders appear to have returned from the New Year’s holiday in an optimistic mood. US index futures are up 0.7% to 1.0%, quickly erasing Tuesday’s US index losses of 0.1% to 0.9%. Cryptocurrencies are also rallying with Bitcoin up 2.3% and Ether up 3.4%. Commodities are also climbing so far with Crude Oil up 1.3%, Natural Gas up 1.4% and Copper up 0.1%. Precious metals are also rallying with Gold up 0.5% and Silver up 1.7%.
Overseas market sentiment, however, has been mixed. Asia Pacific markets sold off to start the year including losses of 2.6% for Shanghai, 2.2% for Hong Kong and 1.0% for Tokyo. European market action is mixed. The FTSE is up 0.6%, the Dax is up 0.1% and the CAC is down 0.5%. Non-US currencies are also struggling today with the Pound down 0.9%, the Euro down 0.4% and the Loonie down 0.3%.
Manufacturing PMI reports have been rolling out overnight and have generally been disappointing coming in below 50 in contraction territory. Australia, the Eurozone, and the UK also came in below expectations.
US initial jobless claims were better than expected (211K vs street 222K). Canada manufacturing PMI (street 51.9) is due at 9:30 am EST followed by US S&P Global Manufacturing PMI (street 48.3) at 9:45 am. US construction spending is due at 10:00 am EST (street 0.3%). Tomorrow brings US ISM Manufacturing PMI.