(Alliance News) - Stocks in London are set to open slightly higher on Tuesday after the long holiday weekend, amid economic data pointing to continuing weakness in China's economy.
IG says futures indicate the FTSE 100 index of large-caps to open up 11.8 points, 0.2%, at 7,463.54 on Tuesday. The FTSE 100 index closed down 60.98 points, 0.8%, at 7,451.74.
"After an ugly 2022, catalysed by hyperinflation and a war on NATO's doorstep, its only fitting stocks are struggling for traction out of New Year gates, given neither of the two adverse drivers in 2022 has been resolved," said SPI Asset Management's Stephen Innes.
Sterling was quoted at USD1.2070 early Tuesday, higher than USD1.2054 at the London equities close on Friday. The euro traded at USD1.0658 early Tuesday, lower than USD1.0686 on Friday. Against the yen, the dollar was quoted at JPY129.84, down from JPY131.84.
In the US on Friday, Wall Street ended slightly lower, with the Dow Jones Industrial Average ending down 0.2%, the S&P 500 down 0.3% and the Nasdaq Composite 0.1% lower.
European markets were open on Monday. The CAC 40 in Paris closed up 1.9%, while the DAX 40 added 1.1%.
In Asia on Tuesday, the Tokyo was closed after New Year's Day. The S&P/ASX 200 in Sydney closed down 1.3%. In China, the Shanghai Composite was up 0.9%, while the Hang Seng index in Hong Kong was 2.0%.
China's manufacturing activity contracted sharply in December for the third month in a row, according to an official survey released on Saturday, despite Beijing's loosening of Covid restrictions at the beginning of the month. The purchasing managers' index came in at 47 points, down from November's 48 and well below the 50-point mark separating growth from contraction, according to data from the National Bureau of Statistics.
"Despite the green shoots in China mobility tracking, December PMIs came in significantly below expectations, and the government's latest tourism data remains depressed. Hence a slower reopening but accelerated Q2 demand with consistently pro-growth policy messages could see oil markets continue to trade in a fitful manner over the short
term," Innes continued.
Released on Monday, the Caixin manufacturing PMI slipped to 49.0 points in December from 49.4 in November.
Brent oil was trading at USD85.94 a barrel early Tuesday, higher than USD83.21 late Friday.
Gold was quoted at USD1,840.97 an ounce early Tuesday, up sharply from USD1,818.60 on Friday.
In the economic calendar on Tuesday, there are manufacturing PMIs from the UK at 0930 GMT and the US later in the day. Meanwhile, on Tuesday's corporate calendar, there are no events scheduled.
By Elizabeth Winter, Alliance News senior markets reporter
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