23rd Sep 2014 06:33
LONDON (Alliance News) - UK shares are set to open flat, with a floor provided by China's HSBC manufacturing purchasing managers index for September, which came in higher than expected.
Futures indicate the FTSE 100 will open just 1 point higher at 6,774.6 after closing at 6,773.63 on Monday.
China's manufacturing sector expanded at an accelerated pace in September, the preliminary PMI reading from HSBC and Markit Economics revealed on Tuesday - showing a score of 50.5. That was up from 50.2 in August, and it topped forecasts for an even 50.0. Investors had feared that the number would drop below the 50.0 mark, indicating a contraction, after some weak economic data from China in recent weeks.
Trading in Asia has been higher with the Hang Seng trading up 0.2% and the Shanghai Composite trading up 0.7%. The Japanese market is closed in observance of Autumnal Equinox Day.
US indices underperformed on Monday, with the DJIA closing down 0.6%, the S&P 500 down 0.8% and the Nasdaq Composite ended 1.1% lower.
Standard Chartered is holding advanced talks over the sale of its Hong Kong consumer finance arm to Pepper Australia Pty Ltd, Reuters reported on Tuesday. Pepper and Hong Kong-based Chow Tai Fook Enterprises were the two top contenders to buy the PrimeCredit arm following two bidding rounds, Reuters said, citing people familiar with the deal. The sale could reach between USD500 million and USD700 million.
FTSE 250 merchant banking company Close Brothers Group said in its full-year results that pretax profit increased to GBP195.7 million from GBP163.8 million last year. The group also said it is increasing full-year dividend by 10% to 49.0 pence.
Fellow FTSE 250-listed company AG Barr said that first half pretax profit increased to GBP16.5 million from GBP13.2 million at the same time last year. The company also reported a rise in first-half revenue to GBP135.7 million from GBP128.7 million and declared a interim dividend increase to 3.11p.
The morning's economic focus will be on European Markit purchasing managers index for September. German manufacturing and services PMI for September will be released at 0830 BST and are expected to come in at 51.2 and 54.6 respectively, both marginally lower than August's print. Eurozone manufacturing PMI for September will be released at 0900 BST. Economists predict that the figure to be 50.9, ahead of August's reading of 50.7, while services PMI is expected to be 53.0, below 53.1 in August.
"Investors could be looking for any indication that the economic malaise Europe finds itself in has started to end as a possible turning point for the euro and the underperformance of European shares," says CMC Markets analyst Jasper Lawler.
The latest grocery market share figures from Kantar Worldpanel are due to be released Tuesday at 0930 BST. This comes after Tesco said on Monday it had overstated its first half pretax profit guidance by GBP250 million, and it has suspended four executives while it undertakes a thorough investigation into the issue, causing the stock to plummet 12% on Monday.
In the afternoon, the focus will turn to US with the Housing Price Index for July to be released at 1400 BST and manufacturing PMI for September at 1500 BST.
By Neil Thakrar; [email protected]
Copyright 2014 Alliance News Limited. All Rights Reserved.
Related Shares:
Close BrosStandard CharteredBarr (A.G.)