Market themes of the Day: Carney’s Brexit testimony highlights the day

What you need to know before markets open
Main themes:

• The UK Labor party increased the pressure on the UK Prime Minister Theresa May saying it will trigger a no-confidence vote should the Brexit deal fail to pass in the parliamentary vote on December 11.
• The ISM manufacturing PMI rose to 59.3 in November but the ISM bub index of prices paid fell sharply to 60.7. “By size, manufacturing is a minor part of the US economy, maybe 15%. But by its importance as an indicator and the status of factory employment, it carries weight.  The recovery in November manufacturing PMI  is a good sign for fourth-quarter GDP,” Joseph Trevisani, a senior analyst at FXStreet commented after the release.
• The Reserve Bank of Australia left the cash rate at 1.5% as widely expected as the bank continues to sit on the sidelines since the last rate cut back in August 2016.

Europe

• German manufacturing PMI improved slightly compared to the preliminary reading to stand at 51.8 in November.
• The Eurozone manufacturing PMI also improved slightly in a final reading to  51.8 in November but remained weakest since August 2016. 
• The Eurozone producer prices are expected to rise 0.5% over the month while increasing 4.5% y/y in October.

UK 

• The UK manufacturing PMI jumped unexpectedly strongly to 53.1 in November more than 51.5 expected by the market. 
• The UK labor party said it will call for a no-confidence vote should There May’s Brexit deal fail to win the parliamentary approval in December 11 vote.
• The Bank of England chief Governor Mark Carney is due to testify, along with three Deputy Governors, about the Brexit Withdrawal Agreement before the Treasury Select Committee in parliament at 9:15 GMT.
• The UK construction PMI is expected to fall to 56.21 in November.
• The Bank of England external Monetary Policy Committee Gerjan Vlieghe delivers a speech at the Plymouth Manufacturing Group Annual Christmas Lecture at 18:00 GMT.

US

• The US ISM in manufacturing is expected to increase slightly to 57.8 in November with the index of prices paid decelerating to 68.3.
• Federal Reserve Bank of New York President John Williams is holding a press conference about local employment and labor force trends at the Federal Reserve Bank of New York at 15:00 GMT.