2nd Mar 2015 06:58
LONDON (Alliance News) - UK stocks are set to open slightly lower Monday ahead of manufacturing Purchasing Managers' Index readings from the eurozone and its large constituents, as well as the UK and the US.
IG futures indicate the FTSE 100 to open 9.6 points lower at 6,937.1. The index closed slightly lower Friday at 6,946.66 after touching a new record intraday high of 6,967.24 as the UK company reporting season continued full throttle, before giving up all its gains right at the close, amid mixed economic data from the US.
In Asia Monday, the Japanese Nikkei 225 index continues its good form, closing up 0.2%. The Hang Seng trades up 0.1%, and the Shanghai Composite is up 0.4%.
The People's Bank Of China on Saturday said it has cut its one-year lending rate by 0.25 percentage point to 5.35%. The Chinese central bank also reduced deposit rates by 0.25 percentage points to 2.5%. The cut in rates came into effect on Sunday.
The bank has made the rate cut, its second in less than four months having previously cut rates in November, in order to stimulate the world's second-largest economy amid concerns of slowing economic growth. The country is facing a weakening property market, a higher proportion of investment being sent offshore and a growing risk of falling prices.
Wall Street closed lower on Friday, with the DJIA ending down 0.5%, the S&P 500 closed down 0.3%, and the Nasdaq Composite ended 0.5% lower.
In the UK corporate schedule, there are full-year results from FTSE 100 inspection and testing services company Intertek Group. In the FTSE 250, full-year results are due from specialty chemicals and materials company Alent, insurer Amlin, manufacturing company HellermannTyton Group, specialist insurer Hiscox, aerospace, defence, and energy engineering company Senior, and Ultra Electronics.
In the economic calendar Monday, there is the Markit manufacturing Purchasing Managers' Index from France at 0845 GMT, Germany at 0855 GMT, the eurozone at 0900 GMT, the UK at 0930 GMT, and the US at 1445 GMT. European consumer prices and unemployment rate are at 1000 GMT, before US ISM manufacturing PMI at 1500 GMT.
By Neil Thakrar; [email protected]; @NeilThakrar1
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