Wednesday, 2 December 2015

US manufacturing shrinks, stocks jump

US manufacturing contracted in November. The Institute for Supply Management reported on Tuesday that its manufacturing index fell to 48.6, the lowest level since June 2009, from 50.1 in October.

The negative news for the economy, however, was shrugged off by US investors. Indeed, the S&P 500 jumped 1.1 percent on Tuesday, its biggest gain since 18 November.

In contrast, the STOXX Europe 600 fell 0.3 percent on Tuesday even though the eurozone manufacturing purchasing managers index rose to 52.8 in November from 52.3 the previous month.

Earlier in Asia, the Shanghai Composite Index edged up 0.3 percent while the Nikkei 225 surged 1.3 percent.

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