6th Oct 2014 06:27
LONDON (Alliance News) - UK stocks are set to open higher Monday following on from a positive session in Asia, with the numbers of pro-democracy campaigners in the streets of Hong Kong dwindling and many returning to work.
Futures indicate that the FTSE 100 will open 25 points higher at 6,552.
UK stocks made significant gains on Friday, enjoying something of a rebound from heavy selling earlier in the week that was sparked by eurozone growth concerns, as well as worries about China resulting from the disruption caused by the pro-democracy campaigners in central Hong Kong.
A strong US jobs report on Friday showed that the US economy added 248,000 jobs in September, providing a big boost to the dollar and helping helping US equity markets to go on to make solid gains, with the DJIA, the S&P 500, and the Nasdaq Composite indices all ending up more than 1.0%.
Further boosting sentiment, the number of activists dwindled at protest sites in Hong Kong on Monday morning, as government employees were able to return to work unobstructed and middle schools reopened.
While the Shanghai Composite remains closed for China's National Day holiday until Wednesday, the Hang Seng in Hong Kong is up 0.6%, and the Nikkei in Tokyo closed up 1.5%.
German investors return to the market Monday after Frankfurt being closed on Friday for the Day of Unity. Having missed out on the gains made across Europe on Friday the DAX is expected to open much higher Monday, with futures pointing up 0.8%.
Data from the eurozone's biggest economy already released Monday has shown factory orders fell much faster than expected in August, with a month-on-month fall of 5.7% recorded, reversing the 4.9% rise seen in September. On an annual basis, factory orders were down 1.3% in August. That's the biggest fall in German factory orders since 2009 and will put yet more pressure on the European Central Bank to do more to support the struggling eurozone economies.
The eurozone sentix investor confidence survey for October will be released at 0930 BST, and is expected to record a fall to negative 12.1 from negative 9.8 in September.
Otherwise it's a relatively quiet start to the week in terms of economic data, with no domestic data releases scheduled.
Tesco has announced the appointment of two-new non-executive directors Monday, as it rushed to bolster its board following the recent accounting issues at the supermarket chain.
Lloyds Banking Group may be in focus following press reports that it is set to cut thousands of jobs and close more branches as it shifts towards a "digitisation" strategy and automates its business.
Mining giant BHP Billiton announced Sunday plans to cut unit costs at Western Australia Iron Ore or WAIO by at least 25% in a move which will make it the iron ore producer with the lowest cost in Australia.
In a scheduled released Monday, FTSE 250-listed food producer Cranswick has said it is well placed to deliver full-year results in line with its expectations.
The pound remains subdued against the dollar after being dragged below the USD1.60 level for the first time since November 2013 following the strong US jobs report. Ahead of the equity market open, the pound trades at USD1.5989, and the euro trades at USD1.2525.
By Jon Darby; [email protected]; @jondarby100
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