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Forex News January 3, 2022

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Europe: 

European shares open higher to begin the new year. 

 A strong start to the day for stocks : Eurostoxx +0.4 percent, Germany’s DAX is up 0.4%,  CAC 40 +0.6%  and Spain +0.2% for the IBEX. 

European indexes enjoyed a fantastic year in 2021 and are off to a good start in 2022. The mood is aided by the fact that US futures are also moving higher, with the S&P 500 futures up 0.4 percent. The CAC 40 index has reached new highs, surpassing 7,200.

  • European indexes begin the new year with new highs. 
  • Risk is in a good mood to start the new year. 
  • European stocks are off to a solid start in the first half-hour. As previously said, the CAC 40 index is setting new highs and is now up 0.9 percent to above 7,200. 
  • In other news, the Stoxx 600 index has reached a new high of 490.76, up 0.6 percent. Gains are seen across the board as risk sentiment cheers on the new year. In other news, oil is up around 1.3 percent to $76.20, with the OPEC+ meeting tomorrow as a focal point.
  • In currency terms, the dollar is maintaining minor gains but has had its gains against the Australian dollar reversed. The AUD/USD is presently unchanged at 0.7260, while the NZD/USD is up 0.3 percent to 0.6844.

Italy 

  • Italy’s December manufacturing PMI was 62.0, up from 62.8 the previous month. 
  • A little lower number than in November, although output growth and new work remain at record highs. As a result, it represents again another strong performance in Italy’s industrial sector to end the year. Nonetheless, work backlogs increased at a survey record rate due to supply limitations, and inflationary pressures remain severe. 
  • Italy’s industrial sector concluded the fourth quarter of 2021 on a high note. The PMI remained close to its all-time high in November, due to sustained solid rise in output and new orders, but growth rates dropped modestly month on month. 
  • Material shortages and rising transportation prices also contributed to a further sharp increase in input costs, prompting enterprises to raise their average rates at a near-record rate in response. However, inflation rates have dropped since November, indicating a possible cooling of pressures at the end of the year. 
  • Despite the excellent result, corporations lowered their production projections for the next year, with mood the lowest since April 2020, as several enterprises expressed concerns about COVID-19, pricing pressures, and supply disruptions.

France

  • France’s December final manufacturing PMI was 55.6, compared to 54.9 preliminary. 
  • This confirms some preliminary indicators of stability in the French manufacturing sector as the year comes to a close. The trends in output and new orders improved slightly, but it was a very quiet quarter overall. Supply restrictions and rising pricing pressures continue to be major issues in the region, as they have been everywhere. 
  • The December PMI survey provided us a few reasons to be a little more positive about the manufacturing sector in the coming months.” The Suppliers’ Delivery Times Index increased significantly in December.
  • Businesses, on the other hand, took advantage, and we saw purchasing activity growth accelerate and stocks of purchases accumulate at the quickest rate on record, which would undoubtedly assist firms improve output levels.” Overall, the stabilising of the output and new order indices following the sharp slowdown in the second half of 2021, along with some relief from supply-side limitations, implies that growth rates may improve in 2022.

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