Yesterday the Chinese PMI indexes had comforted the markets (institutions, these, in constant expectation of comfort, and subject to periodic crises of discouragement). Today, however, Asia was affected (in addition to the recurring tremors linked to the negotiations on the 'fiscal cliff') by the negative data referring to the US PMI released by the ISM. This fell, from October to November, from 51,7 to 49,5. However, there is an unusual gap with respect to the other US PMI index, calculated by Markit: this, again in November, rose from 51,0 to 52,8. The data, therefore, are confused, but it is interesting to note that JP Morgan, in calculating its world PMI, has replaced the ISM data with the Markit data for the United States, deeming the latter less volatile.
However, market discontent was limited, with the regional index only falling by a tenth of a point. Gold has weakened, with some pointing to stalling over the 'fiscal cliff', which promises recession and weak commodity demand. If gold had risen, the 'fiscal cliff' would have been to blame here as well, which promises hard times and therefore a rush to safe-haven assets. The only one who keeps his head on the subject of gold is Warren Buffett, who declared that gold was to be avoided, because it has limited uses and does not have the same potential of arable land or companies to create wealth.
The Reserve Bank of Australia cut rates by a quarter point. The new guide rate, at 3%, equals the minimum reached at the height of the Great Recession. The euro remains above 1.30 and oil has dropped below 89.
