Daily Trade Recap 

Headlines:

• Moody's cuts Japan sovereign rating to A1 from AA3
• Swiss Gold Referendum – No vote wins by an easy margin

Data:

• November 2014 US ISM manufacturing PMI 58.7 vs 57.8 exp
• November 2014 US Markit manufacturing PMI final 54.8 vs 55.0 exp
• November 2014 Canadian RBC manufacturing PMI 55.3 vs 55.3 prior
• Eurozone Markit mftg PMI final Nov 50.1 vs 50.4 flash
• November 2014 UK Markit/CIPS manufacturing PMI 53.5 vs 53.0 exp
• German Markit mftg Nov final 49.5 vs 50.0 flash
• French Markit mftg PMI final Nov 48.4 vs 47.6 exp
• Spanish Markit mftg PMI Nov 54.7 vs 52.6 prev
• October 2014 UK BOE consumer credit 1.087bn vs 0.900bn exp
• Swiss Nov PMI 52.1 vs 55.3 prev
• China manufacturing PMI data for November: 50.3 (expected 50.5)
• China – HSBC manufacturing PMI: 50.0 (vs. flash of 50.0)

Comment:

What a difference a day makes... Massive moves in the metals and Oil. USD and  equities lower.

Massive moves were afoot for the first trading day of December for no particular reason other than the market got itself too one sided..The Asian session kicked off with gap lower opens across the commodities and commodity currencies and the AUS200 continuing on from last weeks drubbing.

After the initial gaps and news of the Swiss No vote, most markets settled in for a big day of PMI data across the globe. Despite the lacklustre Chinese PMI's the market was sideways into the European session kick-off with exception of the AUS200 which was pummelled.

When the European session kicked off , and kick off it did,,, The market looked intent on gap closes and it all began there with the US traders turning the reversal into something resembling carnage for the shorts.

WTI Crude closes the day +$4.71 at 69.01 from the mornings opening low at 63.71 and into minor resistance at 69.66. Weekly Marabuzo resistance sits at 70.39.

Not to be overshadowed by oil the metals saw a huge day. Gold opened the day at 1166.90 sliding to 1142.62 before the bounce ensued and bounce it did.. at one stage up $78.38 before some profit taking came in closing the day at 1205.83. In percentage terms, Silver was where the real action was at one stage up 17% on the day. After the initial slide to 14.34 we close at 16.35, +$2.01. Copper also posted a solid day +12.4 cents. It should be noted that both Gold and Silver held channel resistance so look for a pullback after such massive one day gains.

A weaker day for the global equity markets with the AUS200 the whipping boy early in line with commodities. As the commodity bloc recovered it prompted a bounce with the index closing that day lower by 52 at 5245 but well off its 5183 low from earlier in the day. The Nikkei225 goes out flat despite the Moody's credit downgrade. The German Dax30 closes the day a little higher than where it opened at 9954.75.

US indices were dragged lower on the back of the big energies in the early going with the Nasdaq100 the hardest hit. Nasdaq100 closes the day at 4587.75, down 39.75. The S&P500 closes down 12 handles at 2051.13 and the Dow30 at 17758, down 49.

Whilst all the big action was in the commodities those moves combined with the PMI data had the Fx markets moving as well. The USD gapped higher on the open against most pairs and then reversed.

The Loonie was always going to be the big gainer given the moves in metals and oil. UsdCad goes out at 1.1320, down 138 points from the Asian high at 1.1458. 1.1256/1.1386 covers support and resistance near term. Aussie and Kiwi both gained on the day although much less than one would have thought given the moves in commodities. Aussie closes at 0.8478 ahead of today's RBA meeting, Building Approvals and the Current Account. Kiwi goes out at 0.7862, up 71.

Euro closes the day mixed against the majors. EurUsd closes up 6 at 1.2469. EurGbp sits at 0.7924, down 41 on slightly better UK manufacturing data. EurJpy closes lower by 44 at 147.53 with the moves in UsdJpy doing most of the driving.

Cable closes firmer on the day up 86 at 1.5733 after the early test of recent lows at 1.5584 held.