(Alliance News) - Stock prices in London are seen opening slightly lower on Tuesday following a long holiday weekend in the UK and US and ahead of a swathe of manufacturing PMI releases.
IG futures indicate the FTSE 100 index is to open 7.91 points lower at 7,014.70. The blue-chip index closed up 2.94 points at 7,022.61 on Friday.
"Stock futures are trading primarily flat after recording one of the quietest Mays in a long time. Despite inflation concerns, investors are still happy to support riskier assets, but this view isn't shared by most as they continue to wait for another major catalyst that is likely to set the tone for markets. This was one of the major reasons that we have not seen any decent trading volume during the last month," said AvaTrade analyst Naeem Aslam.
The Japanese Nikkei 225 index was down 0.2%. In China, the Shanghai Composite was down 0.1%, while the Hang Seng index in Hong Kong was up 0.4%.
China's manufacturing sector continued to expand in May, with firms reporting the strongest increase in new work for five months, data from Caixin and IHS Markit showed on Tuesday.
China's general manufacturing purchasing managers' index - a composite indicator designed to provide a single-figure snapshot of operating conditions in the manufacturing economy - inched up to 52.0 in May from 51.9 in April. The figure rose further away from the 50.0 threshold, which separates expansion from contraction.
The growth rate of the Japanese manufacturing sector was sluggish in May, but still saw "moderate improvement" according to the au Jibun Bank PMI.
The au Jibun Bank Japan manufacturing PMI edged lower to 53.0 in May from 53.6 in April. The figure fell closer to the 50.0 threshold, "signalling a softer but still moderate improvement in the health of the manufacturing sector".
The dollar was lower against major counterparts. The pound was quoted at USD1.4225 early Tuesday, up from USD1.4175 at the London equities close Friday.
The euro was priced at USD1.2220, up from USD1.2185. Against the yen, the dollar was trading at JPY109.51, down from JPY110.00.
Ireland's manufacturing sector continued to grow in May, marking an improvement for the seventh time in eight months. The headline AIB Ireland manufacturing PMI rose to 64.1 points in May from 60.8 in April - setting a new survey high. The sharp growth was attributed to "booming" demand, benefiting from Covid restrictions lifting and the economy - in Ireland and Europe - beginning to reopen.
In commodities markets, the OPEC group of oil-producing countries and its allies look set to boost production further when they meet Tuesday, as pandemic-hit demand for crude recovers.
The OPEC+ alliance, consisting of 23 countries, implemented sharp output cuts to support prices after the coronavirus pandemic crushed the global economy last year.
But since early May the cartel has started implementing more generous production increases as oil prices have recovered and the health situation improves in developed economies.
Currently the production roadmap for OPEC+ members consists of a series of increases between May and July adding up to some 1.2 million barrels per day.
Brent oil was trading at USD70.06 a barrel Tuesday morning, up from USD69.77 late Friday.
On the agenda at Tuesday's meeting, expected to start at 1100 GMT, will be whether this can be extended into August.
Gold was quoted at USD1,911.60 an ounce, higher from USD1,895.00.
In the US on Friday, Wall Street ended higher, with the Dow Jones Industrial Average up 0.2%, S&P 500 up 0.1% and Nasdaq Composite up 0.1%. Markets were closed on Monday for Memorial Day.
The economic events calendar on Tuesday has manufacturing PMI readings, with France at 0815 BST, Germany at 0830 BST, the eurozone at 0900 BST, the UK at 0930 BST, and the US at 1445 BST. Eurozone inflation figures are due at 1000 BST.
The UK corporate calendar on Tuesday has annual results from Biffa and DeepMatter Group.
Ahead in the economic events calendar this week, the US jobs report for May in on Friday.
By Arvind Bhunjun; arvindbhunjun@alliancenews.com
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