Industrial data out causing Silver, Palladium to soar as both are considered major Industrial use metals.
ECONX Philadelphia Fed Index Surges in November
Any negativity generated by the Empire Manufacturing Index on Monday was unwound by the Philadelphia Fed Index today. The latter showed a big jump in general business activity as the diffusion index spiked to 22.5 (Briefing.com consensus +5.0) in November from 1.0 in October. A number above zero for this regional manufacturing survey denotes expansion.
The November reading is the highest since May and is equal to the level seen in December 2009. It is also well above the six-month average of 4.7.
The strength in November was fueled by a notable pickup in the new orders index (from -5.0 to +10.4), the shipments index (from 1.4 to 16.8), the unfilled orders index (from -8.9 to +3.7), the average workweek index (from -6.0 to +10.9), and the number of employees index (from 2.4 to 13.3).
In brief, this is a report that suggests manufacturing activity in the Philadelphia Fed region is picking up nicely again after a late-summer lull.
While few pundits are sounding alarm bells anymore about a possible double-dip recession, this is the type of number that should silence the remaining few who are. At the same time, this is the type of number that will get opponents of the Fed's quantitative easing plan riled up again, so it will be worth watching the Treasury market's response to the data and how the stock market reacts to the Treasury market's performance.
Silver & Palladium spot prices soar on data above