Hello traders, and welcome to the first trading week of December. The markets are already setting the stage for an eventful week. Monday kicks off with a relatively busy calendar. Earlier, we saw retail sales from Australia, which exceeded expectations at 0.6%, beating the forecast of 0.4%. Still ahead, we have the ISM Manufacturing PMI from the US, expected to print at 47.7 later today. This week's highlight will come on Friday with the non-farm payrolls (NFP) from the US, an event that typically drives heightened volatility across markets.
The previous week ended on a strong note for indices, with a significant upswing on Friday. However, today’s futures indicate a slight correction as we approach the European session. This pullback is a natural breather after the recent rally. It will be interesting to see if this week brings an attempt at new long-term highs for major indices, particularly in the US.
The Asian session concluded with strength in the US dollar and Canadian dollar, reflecting ongoing investor confidence in the North American economies. Conversely, safe havens like the Japanese yen and Swiss franc are showing weakness. Notably, the euro is also struggling this morning, hinting at challenges for the common European currency.
On the commodities front, oil is showing a bullish attempt, with prices inching higher as we start the week. The momentum here is worth watching, especially with the backdrop of mixed energy market fundamentals. In contrast, metals are under significant selling pressure. Both gold and silver opened the week with sharp declines, raising questions about whether the bearish sentiment will persist in the coming days.
With non-farm payrolls on Friday and a packed week for economic data, traders should brace for potential shifts in market sentiment. For now, the mixed tone across asset classes reflects caution, as investors look to balance recent trends with this week’s critical data releases.