US ISM shows optimism - Nomura

Analysts at Nomura explaained that All in all, the latest reading from the US ISM report suggests that manufactures continued to feel optimistic about both current and near-term conditions in December.

Key Quotes:

"The post election appreciation of dollars and a recent increase in energy prices did not appear to have affected the manufacturing sector materially. Indeed, the new export orders index inched up 4.0pp to 56.0 and imports index was steady at 50.5.

Other survey-based indicators are consistent with the ISM reports. Both December Empire State survey and Philly Fed survey surprised markets to the upside.

Although Chicago PMI expanded at a slower pace, surprising to the downside, today’s ISM report suggests that this slowdown may be due to the series’ monthly volatility."