(Alliance News) - Stock prices in London were set to open higher on Monday, despite a new reading showed growth in the Chinese manufacturing sector came to a halt in March.
Monday's economic calendar has a slew of manufacturing purchasing managers' index readings, including for the eurozone at 0900 BST, the UK at 0930 BST, and the US at 1445 BST.
IG says futures indicate the FTSE 100 to open up 15.56 points, or 0.2%, 7,647.30 on Monday. On Friday, the index of large-cap stocks rose 11.31 points, 0.2%, to 7,631.74, adding 3.1% for the week as a whole.
The dollar was stronger early Monday.
Sterling was quoted at USD1.2285, lower than USD1.2370 at the London equities close on Friday. The euro traded at USD1.0794, lower than USD1.0863 late Friday. Against the yen, the dollar was quoted at JPY133.38, higher versus JPY132.90.
In Asia equities on Monday, the Nikkei 225 index in Tokyo was up 0.5%. In China, the Shanghai Composite was up 0.6%, while the Hang Seng index in Hong Kong was down 0.5%. The S&P/ASX 200 in Sydney closed up 0.5%.
Growth in the Chinese manufacturing sector stalled in March, according to survey data on Monday.
The Caixin manufacturing purchasing managers' index fell to a neutral reading of 50.0 points from the eight-month high of 51.6 in February. The 50-point mark separates growth from contraction and shows manufacturing activity was stable from the previous month.
The reading was below FXStreet-cited market consensus for March of 51.7.
"A softer rise in manufacturing production was one key factor dampening the headline PMI figure. Growth of output was marginal overall, after rising solidly in the previous month. According to anecdotal evidence, production rose in line with client demand," Caixin explained.
Meanwhile, in Japan, the deterioration of the country's manufacturing sector eased slightly in March. The au Jibun Bank manufacturing PMI increased to 49.2 points in March from 47.7 in February.
In the US on Friday, stocks ended higher, with the Dow Jones Industrial Average up 1.3%, the S&P 500 up 1.4% and the Nasdaq Composite up 1.7%
Gold was quoted at USD1,953.36 an ounce early Monday in London, lower than USD1,979.05 on Friday.
Brent oil was trading at USD83.73 a barrel, higher than USD79.14.
Oil prices jumped after Saudi Arabia led a coordinated production cut by major oil powers on Sunday, despite US pressure to pump more crude, saying they were aiming at market stability.
Cuts by the Saudis, Iraq, UAE, Kuwait, Algeria and Oman from May to the end of the year will total more than one million barrels per day – the biggest reduction since the OPEC+ cartel slashed two million barrels per day in October. Russia, a member of OPEC+, said it also was extending its cuts of 500,000 barrels per day to the end of this year, calling it "a responsible and preventive action".
A Saudi energy ministry official "emphasised that this is a precautionary measure aimed at supporting the stability of the oil market", the official Saudi Press Agency said.
Monday's local corporate diary has half-year results from traffic and transportation data services firm Tracsis and a trading statement from engineering services Renew Holdings.
The week picks up pace with a Reserve Bank of Australia interest rate decision on Tuesday, services PMI readings on Wednesday, and the US jobs report on Friday. Financial markets in New York, London, Paris and Frankfurt are closed on Friday, however.
By Sophie Rose, Alliance News reporter
Comments and questions to newsroom@alliancenews.com
Copyright 2023 Alliance News Ltd. All Rights Reserved.
