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LONDON (Alliance News) - UK shares are set to open lower Tuesday, as Monday's disappointing manufacturing purchasing managers' index readings from eurozone countries continues to weigh on investor sentiment.
Futures indicate that the FTSE 100 will open 18 points lower at 6,470.3. The index closed Monday at 6,487.97.
London stocks slumped on Monday as weak manufacturing PMI from China and the eurozone swayed investor sentiment. Tuesday's focus will turn to UK construction PMI for October, due at 0930 GMT.
"The German data also showed some evidence of a rebound and it is through that prism that investors need to look in the context of what the ECB does next. There still seems to be an expectation that we might hear some detail on additional measures that the ECB might consider to aid a recovery in Europe," says Michael Hewson, chief market analyst at CMC Markets.
"This still seems rather optimistic despite the usual suspects of Italy and France lagging behind in the growth stakes as the political gridlock in these countries continues to weigh on their economies," Hewson adds.
US trading closed Monday fairly mixed, with the DJIA closing down 0.1%, the S&P 500 flat, and the Nasdaq Composite up 0.2%.
In Asia, the Nikkei outperforms, gaining 2.7% after the index reopens from its holiday on Monday. Japanese stocks are gaining as the yen falls, which provides a boost to the country's exporters. The Hang Seng trades and the the Shanghai Composite both trade flat.
Japan's manufacturing sector growth was revised to show a slower increase in October, the latest survey from Markit Economics showed. The Markit/JMMA manufacturing PMI, was revised to 52.4 from 52.8 in October. This is more than the 51.7 score in September. However, the latest reading was highest since March and also marked the fifth consecutive month of expansion.
"In particular, the rise in orders was notable, bringing with it a feeling that Japan has finally overcome the sales tax imposed in April," says Joshua Mahony, research analyst at Alpari.
FTSE 100-listed company Imperial Tobacco Group reported a slowdown in its full-year revenue, to GBP26.63 billion from GBP28.27 billion. However, the company's pretax profit rose to GBP1.52 billion from GBP1.22 billion last year, and it reiterated its commitment to dividend growth of at least 10%. The company raised its full-year dividend to 128.10 pence from 116.40p.
Primark owner Associated British Foods reported a rise in full-year pretax profit to GBP1.02 billion from GBP868 million last year. The company said the Primark expansion is set to continue into the year ahead but expects another large fall in AB sugar profit.
There have also been corporate releases from miner Glencore, engineering company Weir Group, life pensions and investment company Legal & General Group, and housebuilder Persimmon PLC.
Still ahead on Tuesday is the release of European Commission's growth forecasts and eurozone producer price index for September both at 1000 GMT.
In the afternoon, US trade balances for September and US factory orders for October, at 1330 GMT and 1500 GMT respectively, will be the highlights. The US also holds mid-term elections Tuesday, with control of the Senate at stake.
By Neil Thakrar; neilthakrar@alliancenews.com
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