US indices closed up on Monday, lifted by the Technology Hardware & Equipment (+1.5%), Energy (+1.42%) and Health Care Equipment & Services (+1.34%) sectors. On the economic data front, the Empire Manufacturing Index rose to 3.5 for December, below the 4.0 consensus, up from 2.9 in November. The Markit US Manufacturing Purchasing Managers Index slightly declined to 52.5 for the December preliminary reading, below the expected 52.6 and down from 52.6 in the November final reading.
On Tuesday, economists expect Housing Starts to increase to 1,344K for November, up from 1,314K the month before. Building Permits are anticipated to fall to 1,418K for November, down from 1,461K in October. Industrial Production monthly change for November is expected to rise 0.8% for November, compared to a fall of 0.8% the prior month. Finally, Capacity Utilization is expected to increase to 77.4% for November, up from 76.7% in October.
European markets are expected to start on a positive note.<\/p>\n\n\n\n
Foreign Exchange<\/strong><\/p>\n\n\n\n The US dollar was bearish against most of its major pairs on Monday, with the exception of the JPY. On the economic data front, the Empire Manufacturing Index rose to 3.5 for December, below the 4.0 consensus, up from 2.9 in November. The Markit US Manufacturing Purchasing Managers Index slightly declined to 52.5 for the December preliminary reading, below the expected 52.6 and down from 52.6 in the November final reading. On Tuesday, economists expect Housing Starts to increase to 1,344K for November, up from 1,314K the month before. Building Permits are anticipated to fall to 1,418K for November, down from 1,461K in October. Industrial Production monthly change for November is expected to rise 0.8% for November, compared to a fall of 0.8% the prior month. Finally, Capacity Utilization is expected to increase to 77.4% for November, up from 76.7% in October.
The Euro was bullish against all of its major pairs. In Europe, Research firm Markit has published preliminary readings of December Manufacturing Purchasing Managers Index for the Eurozone at 45.90 (vs 47.3 expected), for Germany at 43.40 (vs 44.5 expected), for France at 50.3 (vs 51.5 expected) and for the U.K. at 47.40 (vs 49.2 expected). Also, preliminary readings of December Services Purchasing Managers Index were released for the Eurozone at 52.4 (vs 52.0 expected), for Germany at 52.0 (as expected), for France at 52.4 (vs 52.1 expected) and for the U.K. at 49.0 (vs 49.5 expected).
The Australian dollar was bullish against all of its major pairs.<\/p>\n\n\n\n