Oil has soared in commodities trading this afternoon (December 3rd) as investor confidence is given a much-needed boost thanks to a return to prosperity for the Chinese manufacturing industry.
HSBC's purchasing managers index (PMI) hit a 13-month high, while the state-sanctioned PMI for the government touched a seven-month zenith.
The bank's PMI showed a reading of 50.5 – which is up from October's 49.5 – while the official reports posted a figure of 50.6, a rise from the previous month's 50.2.
According to the PMI system, all readings higher than the benchmark of 50 indicate expansion, while those lower mean contraction. Therefore the industry is enjoying a period of growth – albeit at a relatively slow pace.
China's economy is mainly driven by manufacturing and the sector has suffered recently as orders to the struggling US and Europe drop.
At 15:45 GMT, Brent Crude Oil Futures gained by 0.4 per cent to $111.67 per barrel, while West Texas Intermediate Crude Oil Futures advanced by 1.2 per cent to $89.90 per barrel.
Find the latest spread betting strategies for the commodities market at City Index.
GAIN Capital UK Limited (trading as “City Index”) is an execution-only service provider. This material, whether or not it states any opinions, is for general information purposes only and it does not take into account your personal circumstances or objectives. This material has been prepared using the thoughts and opinions of the author and these may change. However, City Index does not plan to provide further updates to any material once published and it is not under any obligation to keep this material up to date. This material is short term in nature and may only relate to facts and circumstances existing at a specific time or day. Nothing in this material is (or should be considered to be) financial, investment, legal, tax or other advice and no reliance should be placed on it.
No opinion given in this material constitutes a recommendation by City Index or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person. The material has not been prepared in accordance with legal requirements designed to promote the independence of investment research. Although City Index is not specifically prevented from dealing before providing this material, City Index does not seek to take advantage of the material prior to its dissemination. This material is not intended for distribution to, or use by, any person in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.