2nd Sep 2014 06:37
LONDON (Alliance News) - UK stocks are set to open higher Tuesday, as investors put aside geopolitics and look towards central banks for trading inspiration.
Futures indicate that the FTSE 100 will open higher by 6 points at 6,831.5. The index ended Monday at 6,825.31.
Monday was dominated by manufacturing PMI figures from the UK and Europe. Results came in lower than expected for almost all countries and highlighted the fragility of European manufacturing, particularly due to its exposure to the tensions between Russia and the West.
On Tuesday, construction PMI for August will be released for the UK at 0930 BST and is expected to show a decrease from July's results at 61.4 from 62.4.
Asian stocks are trading strongly early Tuesday with the exception of Hong Hong's Hang Seng. The Nikkei in Tokyo ended the day 1.2% higher , while the SSE Composite in Shanghai trades up at 1%. The main HK market index, meanwhile, trades down 0.3%.
The return of US markets after the long Labor Day weekend should see an increase in traded volume after Monday's somewhat muted activity in the UK. Investors will have the European Central Bank's interest rate meeting on Thursday firmly in mind and are hopeful that the bank will address the weak economic data and geopolitical concerns within Europe.
"It appears that investors are holding onto the outside prospect that the ECB might announce further steps to help boost growth and demand later this week, particularly after ECB President Mario Draghi?s comments at Jackson Hole late last month, and this appears to be outweighing any concerns about the war between Ukraine and Russia, thus limiting the downside for now," says Michael Hewson, chief market analyst at CMC Markets.
In individual stock news, FTSE 250 housebuilder Redrow has reported a large increase in full-year pretax profit. It posted a GBP132.6 million pretax profit, up from GBP69.4 million the year before. The company also increased its final dividend to 2 pence per share from 1p last year.
In Tuesday's economic calendar, a host of US data will dominate the afternoon with US manufacturing PMI at 1500 BST being the highlight.
By Neil Thakrar; [email protected]
Copyright 2014 Alliance News Limited. All Rights Reserved.
Related Shares:
RDW.L