The fourth quarter has gotten off to a solid start with UK and European markets both higher while futures point to a higher open in the US. Overnight Asian stocks rose buoyed by a rally on Wall Street yesterday as prospects for Chinese manufacturing improved slightly.
Warnings over the implications of a rise in US interest rates and slower global growth from the IMF’s Christine LaGarde have been brushed off as more of the same.
China’s manufacturing remains in contraction territory according to purchasing managers but markets have been able to look through it since the sector has not worsened since previous readings. China’s official manufacturing PMI for September improved to 49.8 while the final reading from Caixin was 47.2.
The final manufacturing PMI for the Eurozone in September remained at 52.0, continuing its steady expansion. Improvement in French manufacturing was offset by a surprise decline in Germany and a bigger than expected miss from Italy. Manufacturing in the UK declined less than expected.
The FTSE 100 was best performing index in Europe, helped by another good day for commodity-stocks.
Short-sellers stood aside again after Glencore (LONDON:GLEN) announced it would cut more South African jobs as it closes mines in the country, helping shares to the top of the FTSE 100.
The chance of BT being split-off from its Openreach division was lowered today, helping shares of BT rise, after the UK’s telecom minister came out as a sceptic on the issue.
Investors dipped their toe in the water of automakers with strong demand for the Ferrari IPO helping shares of Volkswagen (XETRA:VOWG) and Daimler to gains despite a probe in France over VW’s diesel emissions scandal.
US stocks look set for a higher open with the Dow Jones set to rise by double digits as the US congress signs a spending bill averting a government shutdown. There was some speculation the Fed might be forced to raise rates at the October meeting before the government shutdown would begin so the spending bill confirms December as the likelier date again.
Twitter (NYSE:TWTR) shares could be in play on rumours Jack Dorsey is set to be confirmed as permanent chief of the troubled social network.
USA pre-opening levels
S&P 500: 12 points higher at 1,932
Dow Jones: 112 points higher at 16,396
Nasdaq 100: 37 points higher at 4,216.
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