Last checked at LONDON (Alliance News) - London stocks are broadly higher Thursday midday, as commodity-related stocks climb out of their recent hole, while New York is called for a positive open, with an increased appetite for risk among investors as Chinese stock markets closed for a holiday.
The FTSE 100 index was up 1.1% at 6,126.34 points, the FTSE 250 traded up 0.9% at 16,839.52 and the AIM All-Share was up 0.2% at 726.60. In Europe, the French CAC 40 index was up 0.7%, but the German DAX 30 was down 0.1%.
Wall Street futures pointed higher, resuming the positive trading from Wednesday, with the Dow 30 and the S&P 500 both seen up 0.6% and the Nasdaq 100 pointed up 0.8%.
"The Chinese market is shut until mid-next week, and this will help remove volatility from the global markets, as the nation has been the epicentre of major selloffs recently," said David Madden, market analyst at IG.
The Hong Kong and Shanghai markets were closed for Chinese National Day Thursday. Hong Kong will reopen Friday, while Shanghai will remain closed for a week to celebrate the festival.
There were economic data from China, which IG's Madden said were not seen as bad as they have been recently. "When it comes to China these days, as long as the figures are not terrible they are deemed to be respectable, and while the market is closed for holidays it will entice buyers back into the mix," added Madden.
The latest report from the National Bureau of Statistics showed that the manufacturing sector in China continued to contract in September, albeit barely, with a purchasing managers' index score of 49.8. That beat forecasts for a reading of 49.7, which would have been unchanged from the August reading - although it remains just barely beneath the boom-or-bust line of 50 that separates expansion from contraction.
Non-manufacturing Purchasing Manager's Index released by China Federation of Logistics and Purchasing based on a survey of about 1,200 companies came in at 53.4 for September, unchanged from August.
A separate report from Caixin also showed that China's manufacturing sector continued to contract in September, with a final manufacturing PMI score of 47.2. That beat expectations for 47.0, which would have been unchanged from last month's preliminary reading, although it remains at a six-and-a-half year low.
There also were data from Japan. The Nikkei manufacturing PMI showed growth in the Japanese manufacturing sector slowed in September. The PMI reading for the month came in at 51.0 from 51.7 in August but was slightly ahead of the 50.9 preliminary reading last month.
Nevertheless, the Japanese Nikkei 225 index closed 1.9% higher.
Outside Asia, there was a mixed flurry of manufacturing PMI readings from several European countries.
Eurozone manufacturing activity grew at a slower pace as estimated in September, final data from Markit showed Thursday. The manufacturing PMI fell to a five-month low of 52.0 in September from 52.3 in August. The reading came in line with the economists estimate.
Germany's manufacturing PMI dropped to 52.3 in September from 53.3 in August, while expectations were for 52.5. The data signalled a slowdown in new orders and production growth in September.
Meanwhile, French manufacturing activity increased for the first time in three months. The French manufacturing PMI came in at 50.6, up from 48.3 in August. It was above the expectations of 50.4.
In the UK, manufacturing activity expanded at the weakest pace in three months in September, survey figures from the Chartered Institute of Procurement & Supply and Markit Economics showed.
The PMI fell slightly to 51.5 in September from 51.6 in August, which was revised up from 51.5. Economists had forecast the index to fall to 51.3. Any reading above 50 indicates expansion in the sector.
Investors are still focusing in more economic data releases expected later in the day. US initial and continuing jobless claims are due at 1330 BST. Markit US manufacturing PMI is due at 1445 BST, while there is also Institute for Supply Management manufacturing PMI at 1500 BST, alongside US construction spending.
At 1930 BST, Federal Reserve Bank of San Francisco President John Williams speaks on the economic outlook before a Salt Lake Area community leader's event.
On the London Stock Exchange, miners are continuing their rebound, with Glencore up 2.6%. With the gains seen Thursday, the stock has almost regained all the losses it incurred on Monday, when it fell 29%, after strong performances on Tuesday and Wednesday. However, Glencore shares remain down 69% in 2015 so far.
Others in the sector also were higher, with BHP Billiton up 3.2%, Anglo American up 2.9% and Fresnillo up 2.5%. FTSE 250-listed KAZ Minerals was the biggest mid-cap gainer, up 6.8%.
Oil-related stocks also were in the green on the back of a rise in crude prices. Brent oil was at USD49.29 a barrel after standing at USD48.21 after the London close Wednesday. West Texas Intermediate was also higher at USD46.14, having stood at USD44.96 after the London close.
BP was up 3.8%, Royal Dutch Shell 'A' was up 2.9% and BG Group was up 2.0%.
Mid-cap stock Tullow Oil was up 8.0%. The oil and gas company said its banks have completed their reserve-based lend redetermination process and said its financing arrangement remain the same as a result.
Tullow said is available debt capacity remains at USD3.7 billion. At the end of September, the company had cash and undrawn credit facilities totalling USD2.1 billion with headrooms and no near-term maturities. Numis also added Tullow to its Top Picks, according to traders.
Education and publishing company Pearson was up 3.2% after Citigroup resumed its coverage at Buy.
Meanwhile, Johnson Matthey was up 2.7%. The chemicals company said it has completed the sale of its Alfa Aesar Research Chemicals unit to Thermo Fisher Scientific, agreed in June, for GBP256.0 million in cash and said Executive Director Larry Pentz will retire in March 2016.
In the red, supermarkets were trading lower as investors took profits following gains by the company's shares on Wednesday. The whole sector had been buoyed by Sainsbury's, which said its full-year underlying pretax profit will be "moderately ahead" of consensus after it achieved growth in sales in the second quarter of its financial year. Sainsbury's closed up 12% Wednesday on the news, while Tesco rose 7.0% and Morrisons 6.0%, as they benefited from their rivals upbeat update.
On Thursday, Wm Morrison Supermarkets was down 2.6%, Tesco down 2.0%, and J Sainsbury down 1.6%.
Coca Cola HBC was off 0.5% after UBS downgraded the company to Sell from Neutral.
On AIM, Ortac Resources was up 65%. The miner said Zamsort, which it has a 19% stake, has raised a further USD2.0 million from Kopara Investments. The investment made by Kopara takes its stake in Zamsort up to 20% and will mean it can appoint someone to Zamsort's board. "Kopara's investment is an endorsement of the quality and potential of Zamsort's licences and stands in stark contrast to the prevailing market," said Vassilios Carellas, Ortac's chief executive.
Meanwhile, Caza Oil & Gas was down 53%. The oil and gas company said it has had to secure an extension on its financing agreement with Apollo Investment as it failed to meet the covenants in the arrangements. Caza previously had the deadline for it to achieve the necessary compliance with the covenants extended to Wednesday after it had failed to meet the requirements in June and in December 2014. The new extension takes the deadline for it to comply with the covenants to October 31.
By Daniel Ruiz; danielruiz@alliancenews.com
Copyright 2015 Alliance News Limited. All Rights Reserved.
Today 13:58
DIRECTOR DEALINGS: Coca-Cola HBC, M&S and Elementis execs sell shares
(Alliance News) - The following is a round-up of share dealings by London-listed company directors and managers announced this week and not separately reported by Alliance News:
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