FTSE 100 set kick off the week in positive territory with China’s manufacturing data providing a lift

The FTSE 100 look set to open the new trading month on the front foot, taking its cue from Asia.

The region’s major indices were buoyed by better than expected manufacturing figures from China.

The Caixin/Markit Purchasing Managers’ Index for the November provided a reading of 51.8, compared with the forecast 51.4 and the 51.7 achieved in October. A number over 50 denotes the sector’s expansion.

“Last week the latest flash manufacturing numbers from France and Germany also showed an improvement, raising the prospect that we may well have seen the bottom of the trough,” said Micheal Hewson of CMC Markets.

Numbers from Spain, Italy, France and Germany

Later Monday we have PMI numbers from Spain, Italy, France and Germany, which “could well go further in reinforcing this narrative”, added Hewson.

Here in the UK, the election is once again set to take centre stage, and Boris Johnson looks to be heading in the same direction of his predecessor with his poll lead narrowed to 5%.

The prospect of another hung parliament had little impact on sterling, which hovered at US$1.2917.

The corporate news flow, meanwhile, is starting to slow as we head into the traditional pre-Christmas lull.

Updates are expected this week from builder Berkeley () and Associated British Foods (), owner of the Primark chain.

Around the markets: Gold US$1,465.40 an ounce, down US$7.30; Brent crude up 81 cents a barrel at US$61.30; Bitcoin US$7,222.87, down US$1.17.                  

Monday’s Main Corporate News

Interims: (), ()

EGM: Group PLC ()

Economic data: UK Manufacturing PMI, US Manufacturing PMI

Business Headlines 

Financial Times

• EU chief issues Brexit warning over City of London access
• Hedge fund TCI vows to punish directors over climate change
• Goldman to avoid strict financial targets at investor day
• Activist fund set to double stake in banknote maker De La Rue – Crystal Amber’s move shows sign of confidence in struggle UK group

Times

• Carney made UN envoy for climate action and finance
• Smooth Brexit to deliver strong growth, says CBI
• looks to bank on £130mln injection
• Funds bid to scupper Inmarsat takeover

Daily Telegraph

• eyes multi-year Boris boom, but warns on gilts risk
• Saudi fortunes slip amid pressures on Aramco float and oil market oversupply
• Sir Vince Cable: I knew Royal Mail couldn’t deliver