Markets in London and across Europe ticked up on Tuesday morning, in a positive start to the first trading day of the year.
The moves came ahead of a key read on UK manufacturing output, a PMI data due on Tuesday morning.
The FTSE 100 (^FTSE) was up 0.3% after the opening bell. Germany’s DAX (^GDAXI) rose 0.7% and the CAC (^FCHI) was up 0.6%.
Rolls-Royce (RR.L) and Marks & Spencer (MKS.L) were among top gainers in the FTSE 100.
Data elsewhere showed that food price inflation in the UK cooled to its lowest level since June 2022, with overall shop price inflation remaining unchanged at 4.3% in December. This was below the three-month average rate of 4.6%.
Meanwhile, the pound strengthened against the dollar (GBPUSD=X) to trade almost 0.2% higher, at around the $1.27 mark.
Overnight in Asia
Stocks in China fell overnight after mixed data was released on its manufacturing sector. The country’s official PMI showed that manufacturing output slipped further into the red in December, signalling a potential need for more economic firepower from the government.
Data from Caixin, another monitor, however, has shown growth in manufacturing, coming in at 50.8 in December, up from 50.7 in November. Any reading above 50 indicates growth.
There had been concerns throughout 2023 that growth in one of the world’s largest economies is stalling, with the government offering various packages to try to help it rev up again.
The Hang Seng (^HSI) was down 1.5% at the close on Tuesday while the SSE Composite (000001.SS) slipped 0.4%.
Markets in Japan, which will likely have a reaction to a deadly earthquake in Ishikawa, are closed until 4 January.
Trouble in the Red Sea
Oil prices headed higher on Tuesday, as tension across the Red Sea continues with the conflict between Israel’s government and Hamas.
Brent crude (BZ=F) was up 1.5%, to trade at $78.34 a barrel as markets opened. Crude (CL=F) also rose 1.3% to trade at $72.57.
Israel said on Monday that it expects the conflict to continue throughout 2024.
Read more: SG’s Yao: China Housing Demand In Contraction
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