(Alliance News) - Stocks in London are set to open slightly higher on Monday, ahead of a slew of purchasing managers' index readings.

IG says futures indicate the FTSE 100 to open up 9.06 points, 0.1%, at 7,624.60 on Monday. The index of London large-caps closed down 6.62 points, down 0.1%, at 7,615.54 on Friday.

In the US on Friday, Wall Street ended higher, with the Dow Jones Industrial Average up 0.4%, the S&P 500 up 1.1% and the Nasdaq Composite up 1.7%.

"The resilience being seen in equity markets, particularly in the US, is surprising given that central banks are signalling that the prospect of early rate cuts is going to have to wait until later in the year, with the last few days forcing a major rethink on the timing of such a move, especially in the US," said Michael Hewson at CMC Markets.

Last week started with optimism of an interest rate cut in March, but ended with analysts querying whether one would arrive even in May, as the US economy continued to defy those who predicted higher rates would lead to recession.

But while the strong jobs report seemed to end hopes for a March cut, investors preferred to focus on the resilience showed by the economy and the improved outlook for corporate profitability.

According to Bureau of Labor Statistics, nonfarm payroll employment rose by 353,000 in January, picking up speed from 333,000 in December.

The latest figure defied the consensus forecast. Hiring was predicted to slow to 180,000 jobs, according to consensus cited by FXStreet.

However, in an interview aired Sunday Federal Reserve chief Jerome Powell said the US is on an "unsustainable" path with regard to its national debt and it is time to address the issue. The US national debt currently stands at more than USD34 trillion, according to the US Treasury.

"In the long run, the US is on an unsustainable fiscal path. The US federal government's on an unsustainable fiscal path. And that just means that the debt is growing faster than the economy," Powell told CBS' "60 Minutes" news program.

In China, the Shanghai Composite was down 1.0%, while the Hang Seng index in Hong Kong was down 0.1%.

China's service sector activity growth slowed mildly in January, data from S&P Global showed.

The seasonally adjusted headline Caixin China general services business activity Index fell to 52.7 in January from 52.9 in December.

Meanwhile, the Caixin China general composite PMI decreased to 52.5 in January from 52.6 a month prior.

Wang Zhe, senior economist at Caixin Insight Group said: "Overall, supply outpaced demand. Taking both sectors into account, employment stabilized, with the services sector outperforming manufacturing. Price levels were subdued, putting significant pressure on corporate revenues."

In Asia on Monday, the Nikkei 225 index in Tokyo was up 0.5%, after data showed that Japan's expansion in business activity accelerated in January.

The headline au Jibun Bank Japan services business activity index rose to 53.1 in January from 51.5 in December.

Meanwhile, the au Jibun Bank Japan composite PMI output index climbed to 51.5 in January from a neutral 50.0 in December, the strongest increase since September.

The S&P/ASX 200 in Sydney closed down 1.0%.

Sterling was quoted at USD1.2614 early Monday, lower than USD1.2639 at the London equities close on Friday.

The euro traded at USD1.0781 early Monday, lower than USD1.0793 late Friday. Against the yen, the dollar was quoted at JPY148.36, flat versus JPY148.35.

Gold was quoted at USD2,029.50 an ounce early Monday, lower than USD2,034.63 on Friday.

Brent oil was trading at USD77.65 a barrel early Monday, higher than USD77.09 late Friday.

In Monday's UK corporate calendar, telecommunications operator Vodafone puts out a trading statement.

This week's economic diary has a slew of services purchasing managers' index readings on Monday, a Reserve Bank of Australia interest rate decision on Tuesday, and Chinese inflation data on Thursday.

By Sophie Rose, Alliance News senior reporter

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