Stocks in the European region were seen starting the trading week higher on Monday as investors focus on the release of a set of manufacturing Purchasing Managers’ Index (PMI) from major economies across the eurozone.
The European Central Bank (ECB) upcoming policy meeting will also be a main focus for the market, with expectations of a cut to the central bank’s interest rate to tackle the tame inflation in the region.
The European Euro Stoxx 50 climbed 0.22% to 3,251.84, while the German DAX gained 0.39% to 9,981.82 at the time of writing. At the same time the French CAC 40 edged 0.14% higher to 4,526.01, while UK’s benchmark FTSE 100 added 033% to 6,867.29.
PMI Reports
As investors awaits a set of manufacturing PMI data from major economies in the Eurozone later today, the market is expecting the Eurozone’s manufacturing PMI to have fallen to 52.5 in May, down from the previous figure of 53.4 seen in the previous month.
The UK is expected to report a drop in its manufacturing PMI figure to 57.0 from 57.3 in April. In Spain, the nation’s manufacturing PMI is forecasted to have risen to 53.0 in May from 52.7 reported in the previous month.
Italy’s manufacturing PMI figures is predicted to come in at 53.6, down from the previous reading of 54.0 in April.
In Paris, the French’s manufacturing PMI is forecasted to come in at a low 49.3 in May from 51.2 in April, while Germany’s manufacturing PMI is projected to fall to 52.9 in May, from 54.1 seen in the previous month.
Germany is also expected to report the nation’s preliminary inflation data for May due later in the day and expected to show a rise of 0.2% month-on-month and 1.1% rise on an annual basis.
ECB Meeting
Later in the day, ECB official members including Yves Mersch, Luis Maria Linde and Daniele Nouy are expected to give speeches before the central bank’s policy meeting scheduled for June 5.
The markets are expecting the ECB to cut its benchmark interest rate from 0.25% down to 0.15% or 0.10% during the meeting on Thursday, to tackle the low inflation and the strong euro exchange rate which could weigh on consumer prices.
Stocks – Asia
Asian stocks rose on Monday, boosted by China’s upbeat manufacturing data released on Sunday.
China
Over the weekend, reports released showed that the Chinese Purchasing Index (PMI) rose to 50.8 in May from the previous figure of 50.4 in April, while analysts’ forecasted a reading of 50.7, according to reports from China Federation of Logistics and Purchasing and the National Bureau of Statistics.
A reading above 50 indicates expansion, while any reading below 50 shows contraction. Markets in China were closed on Monday for public holiday.
Japan
The Japanese benchmark Nikkei 225 index rallied 1.28%, to trade at 14,820.06 points, while Tokyo’s Topix index gained 1.08% to 1,214.35 points. Exports in Japan were boosted by the weaker yen on Monday, as the yen weakened to 101.95 against the US dollar.
Electronic companies saw gains during the session, with Sharp leading gains with 2.5%, while Toshiba and Hitachi traded just over 2%.
However, Dia-ichi Life Insurance fell by 4% after the company said it was looking to buy US Protective Life for $4.9 billion.
South Korea’s benchmark Kospi index rose 0.29% higher to 2,000.74 points, while Australia’s benchmark S&P/ASX 200 slid 0.07% lower at 5,488.70 points at the time of writing.
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Stocks – Europe
Stocks in the European region were seen starting the trading week higher on Monday as investors focus on the release of a set of manufacturing Purchasing Managers’ Index (PMI) from major economies across the eurozone.
The European Central Bank (ECB) upcoming policy meeting will also be a main focus for the market, with expectations of a cut to the central bank’s interest rate to tackle the tame inflation in the region.
The European Euro Stoxx 50 climbed 0.22% to 3,251.84, while the German DAX gained 0.39% to 9,981.82 at the time of writing. At the same time the French CAC 40 edged 0.14% higher to 4,526.01, while UK’s benchmark FTSE 100 added 033% to 6,867.29.
PMI Reports
As investors awaits a set of manufacturing PMI data from major economies in the Eurozone later today, the market is expecting the Eurozone’s manufacturing PMI to have fallen to 52.5 in May, down from the previous figure of 53.4 seen in the previous month.
The UK is expected to report a drop in its manufacturing PMI figure to 57.0 from 57.3 in April. In Spain, the nation’s manufacturing PMI is forecasted to have risen to 53.0 in May from 52.7 reported in the previous month.
Italy’s manufacturing PMI figures is predicted to come in at 53.6, down from the previous reading of 54.0 in April.
In Paris, the French’s manufacturing PMI is forecasted to come in at a low 49.3 in May from 51.2 in April, while Germany’s manufacturing PMI is projected to fall to 52.9 in May, from 54.1 seen in the previous month.
Germany is also expected to report the nation’s preliminary inflation data for May due later in the day and expected to show a rise of 0.2% month-on-month and 1.1% rise on an annual basis.
ECB Meeting
Later in the day, ECB official members including Yves Mersch, Luis Maria Linde and Daniele Nouy are expected to give speeches before the central bank’s policy meeting scheduled for June 5.
The markets are expecting the ECB to cut its benchmark interest rate from 0.25% down to 0.15% or 0.10% during the meeting on Thursday, to tackle the low inflation and the strong euro exchange rate which could weigh on consumer prices.
Stocks – Asia
Asian stocks rose on Monday, boosted by China’s upbeat manufacturing data released on Sunday.
China
Over the weekend, reports released showed that the Chinese Purchasing Index (PMI) rose to 50.8 in May from the previous figure of 50.4 in April, while analysts’ forecasted a reading of 50.7, according to reports from China Federation of Logistics and Purchasing and the National Bureau of Statistics.
A reading above 50 indicates expansion, while any reading below 50 shows contraction. Markets in China were closed on Monday for public holiday.
Japan
The Japanese benchmark Nikkei 225 index rallied 1.28%, to trade at 14,820.06 points, while Tokyo’s Topix index gained 1.08% to 1,214.35 points. Exports in Japan were boosted by the weaker yen on Monday, as the yen weakened to 101.95 against the US dollar.
Electronic companies saw gains during the session, with Sharp leading gains with 2.5%, while Toshiba and Hitachi traded just over 2%.
However, Dia-ichi Life Insurance fell by 4% after the company said it was looking to buy US Protective Life for $4.9 billion.
South Korea’s benchmark Kospi index rose 0.29% higher to 2,000.74 points, while Australia’s benchmark S&P/ASX 200 slid 0.07% lower at 5,488.70 points at the time of writing.
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