After the thin volume by high volatility of last week we could well be looking at more of subdued start to the week as volume returns and US traders returning to their desks try and decipher last week’s moves.
Despite a record-high close on the S&P 500 last Friday, Asian equities edged lower, led by Korean markets. Chinese stocks continued to decline after having the biggest one-day selloff in 17 months on Thursday, as rising government and corporate bond yields signaled tighter liquidity conditions.
The U.S. dollar depreciated on Friday and touched a five-week low against major currencies. The U.S. Thanksgiving holiday truncated the week with European economic data outperforming U.S. indicators. The United States closed the week with disappointing purchasing manager index (PMI) estimates in the manufacturing and service sectors.