European equities corrected up to 1% lower today

European equities corrected up to 1% lower today despite decent EMU PMI data. US stock markets also correct around 0.5% in a rising interest rate environment.

Euro zone business activity expanded the most in nearly a year in November on strong manufacturing and buoyant services growth in Germany, stirring some optimism that economic momentum is picking up again. The November composite manufacturing PMI increased from 53.3 to 54.1 whereas a stabilization was expected.

The ECB is looking for ways to lend out more of its huge pile of government debt to avert a freeze in the €5.5 trillion short‐term funding market that underpins the financial system, central bank sources told Reuters.

Brussels is proposing an array of changes to the EU's banking rules in a bid to end the era of taxpayer bailouts while also sweeping away red tape that officials fear could be holding back lending. The package of measures stretches from adjustments to banker bonus rules to plans for forcing US and other non‐EU banks to set up holding companies within Europe.

Chancellor of the Exchequer Hammond said the U.K. economy will grow more slowly (1.4%) than previously forecast (2.2%) in 2017 and the government will need to borrow more over the next five years, as he laid out the framework for a post‐Brexit Britain.

Orders for U.S. business equipment climbed in October for the fourth month in the last five and sales also advanced, indicating corporate investment may be starting to thaw. Headline durable goods orders rose 4.8% M/M (1.7% M/M) expected. Shipments of non‐defence capital goods excluding aircraft, used in calculating GDP, rose 0.2% M/M.