- Oil prices are down as OPEC agreement in question.
- US politics positives help the markets.
- Can China data surprise again?
Haven-linked yen and the US dollar fell against their G10 counterparts while S&P 500 futures rose – setting the tone for a risk-on opening day of the new week.
The Australian and New Zealand dollars are slightly underperforming in a broadly upbeat global market.
The Thanksgiving Holiday had affected liquidity last week in the US markets while a set of positive news including Trump’s readiness, albeit reluctant, to transfer power to Biden; nomination of former Fed Chair Yellen as Treasury secretary and positive coronavirus developments helped to drive market optimism.
Oil prices are not reflecting the cheer today as the WTI benchmark prices fell at the market open – in reaction to the OPEC+’s lack of agreement to delay the planned January output hike.
Oil ministers from OPEC and other major oil producers like Russia will today start a meeting to iron out the differences. The gathering until December 1, if unsuccessful in finding an agreement, will result in an output rise by 1.9 million barrels per day from the start of 2021.
In the economic docket ahead, traders eye the November’s official Chinese PMI data with an expected uptick in manufacturing and a slightly slower pace in services. Any surprise, like in other recent economic data from China, can help the upbeat market mood.