The HSBC China Manufacturing PMI climbed further into positive territory in December, advancing more than twice as much as expected. In China, stocks advanced on Monday after the HSBC China Manufacturing PMI rose to 51.5 in December from November’s 50.5.  Economists had been expecting a more modest increase to 50.9. From the report: After adjusting for seasonal factors, the HSBC  Purchasing Managers’ Index™ (PMI™) – a composite indicator designed to give a single-figure snapshot of operating conditions in the manufacturing economy – posted 51.5 in December, up from 50.5 in November, signalling a modest improvement of operating conditions in the Chinese manufacturing sector.  Moreover, it was the highest index reading since May 2011. The Shanghai Composite Index jumped 1.61 percent to 2,269 (NYSEARCA:FXI).  However, Hong Kong’s Hang Seng Index dipped 0.04 percent to 22,656 (NYSEARCA:EWH). In France, the Conseil Constitutionnel overturned the new law, promoted by President François Hollande, intended to raise the tax rate to 75 percent on those with incomes above €1 million per year (NYSEARCA:EWQ).  The new law caused many wealthy French citizens to consider leaving the country.   France Escapes Recession Trading on the major European stock exchanges concluded early on Monday in observation of New Year’s Eve.  The Euro STOXX 50 Index finished Monday’s session with a 0.34 percent advance to 2,635.  The STOXX 50 is staying above its 50-day moving average of 2,554 as well as its March 19 high of 2,608 (NYSEARCA:VGK).  The FTSE 100 Index declined 0.31 percent to 5,906 (NYSEARCA:EWU).  The Frankfurt Stock Exchange was closed for New Year’s Eve (NYSEARCA:EWG).  France’s CAC 40 Index advanced 0.69 percent to 3,645 (NYSEARCA:EWQ).  Spain’s IBEX 35 Index dipped 0.02 percent to 8,129 (NYSEARCA:EWP).  Italy’s Borsa Italiana stock exchange was also closed for New Year’s Eve (NYSEARCA:EWI). As of 11:27 EST, the euro declined 0.24 percent against the dollar, trading at $1.3184 (NYSEARCA:FXE). Spain’s ten-year bond yield declined to 5.24 percent on Monday from Friday’s closing level of 5.25 percent.  Spain’s two-year bond yield declined to 2.85 percent on Monday from Friday’s closing level of 2.87 percent (NYSEARCA:EWP). Italy’s ten-year bond yield declined to 4.53 percent on Monday from Friday’s closing level of 4.54 percent (NYSEARCA:EWI). On London’s ICE Futures Europe Exchange, February futures for Brent crude oil declined by 4 cents (0.04 percent) to $110.58/bbl. (NYSEARCA:BNO, NYSEARCA:USO). February Gold futures advanced by $6.50 (0.39 percent) to $1,662.40 per ounce (NYSEARCA:GLD). In Japan, the yen continued to weaken, benefiting the nation’s exporters, whose products will be more competitively priced in foreign markets (NYSEARCA:FXY).   Yen Limbo – How Low Will It Go?   The Tokyo Stock Exchange was closed on Monday (NYSEARCA:EWJ). American stock index futures were in positive territory ahead of Monday’s opening bell on widespread enthusiasm about resolution of a stalemate in the budget negotiations.  The March 13 Dow Jones Industrials future advanced 0.52 percent to 12,843 as of 9:14 EST.  The March 13 S&P 500 future climbed 0.69 percent to 1,393 (NYSEARCA:SPY).  The March 13 Nasdaq 100 future rose 0.48 percent 2,598. Bottom line:  The HSBC China Manufacturing PMI jumped more than twice as much as expected in December, causing a rally on the Shanghai Stock Exchange which brought a 1.61 percent advance for the Shanghai Composite Index.         Sign up for Wall Street Sector Selector’s FREE Stock Market Timing Indicator!    Disclaimer: The content included herein is for educational and informational purposes only, and readers agree to Wall Street Sector Selector’s Disclaimer , Terms of Service , and Privacy Policy before accessing or using this or any other publication by Wall Street Sector Selector or Ridgeline Media Group, LLC.