Stocks remain under pressure

The dollar is a little firmer this morning as equity markets remain under pressure, with the US currency trading at around $1.13 and $1.27 against the euro and sterling respectively. The pound is largely unchanged against the single currency at 89p, with the debate on the Brexit deal continuing today in the UK parliament and the government’s chief whip reportedly trying to appease some of the “Hard Brexiteers” ahead of next Tuesday’s vote

There doesn’t seem to be any respite in store for socks just yet with Asian markets a good bit weaker overnight and European indices opening lower this morning (and the US set to do likewise later today). Not surprisingly given this backdrop, bond yields in the core markets are edging down

The composite PMI in the UK fell for a third consecutive month in November (to stand at 50.7, its lowest level since immediately after the Brexit referendum in June 2016), suggesting that GDP growth has eased from the relatively strong pace recorded in Q3 (of 0.6% q-o-q)

The Fed’s latest Beige Book reports that the labour market in the US tightened further in recent weeks as firms struggle to attract and retain qualified workers, with wage growth picking up as a result. It also reports that “tariff-induced cost increases have spread more broadly from manufacturers and contractors to retailers and restaurants”

Plenty of data due today, mostly in the US including jobless claims, ADP employment report and the ISM index of non manufacturing activity