US pre-open: Markets set for higher open amid positive Chinese manufacturing data
Markets look set for a slightly higher open on Monday after a bullish European open and better-than-expected manufacturing data from China and the UK.
China brought in slightly higher manufacturing data figures than what was forecast while the Chinese central bank’s decision to slash interest rates by 25 basis points. HSBC’s manufacturing Chinese PMI was unexpectedly revised to 50.7 in February from 50.1.
In the UK, Markit’s manufacturing PMI jumped to a seven-month high of 54.1 in February, up from 53.1 in January. Analysts had expected a reading of 53.4.
IG analyst Alastair McCaig said: “After seeing both China and the UK overshoot manufacturing expectations, this template looks like it will be replicated this afternoon by the US rather than the lacklustre Eurozone equivalent.
Spreadex analyst Connor Campbell added: “After the dollar received its latest boost following the Chinese central bank’s rate cut at the weekend, the greenback has slipped against the euro in light of the Eurozone’s strong start to the month.”
Stateside, reports on personal consumption expenditure and manufacturing will be due at 13:30 GMT and 15:00 GMT, respectively.
Oil prices fell early in the day, Brent fell 2.1% to $61.29 a barrel and WTI dropped 1.9% to $46.83 a barrel.
Over on COMEX, gold futures were rising 0.21% to $1,215.70 while the dollar was advancing against the pound and receding against the euro and the yen.