LONDON (Alliance News) - US stocks are expected to open higher Tuesday, following strong performances by their UK and European counterparts, as investors await a raft of US macroeconomic data.
Equities in the UK and Europe opened firmly higher Tuesday following some upbeat manufacturing data from China.
The results of a survey by the China Federation Of Logistics and Purchasing and the National Bureau of Statistics revealed that Chinese manufacturing PMI rose to 51 in June from 50.8 in May. Meanwhile, the HSBC manufacturing PMI rose to 50.7 in June from May's 49.4, marking the first signs of improvement since December 2013.
In Europe, manufacturing PMIs were largely mixed, while the UK's manufacturing PMI came in ahead of economist expectations.
Data from Markit economics showed that the UK manufacturing PMI rose to a seven-month high of 57.5 in June, compared with 57.0 in May. Economists had expected the index to come in at 56.8.
Prior to the US equity market open, London'sFTSE 100 is up 0.6% at 6,784.37, the FTSE 250 is up 0.5% at 15,793.06, and the AIM All-Share index is up 0.3% at 787.48.
In Europe, the CAC 40 in Paris is up 0.6%, while the DAX 30 is up 0.2%.
"There’s been a lot of data released over the last 24 hours leaving investors with a lot of information to digest," says Craig Erlam, a market analyst at Alpari. "Looking at the markets though, it would appear that they largely approve, with European indices trading comfortably in the green and US futures pointing to a similar open in a few hours," he adds.
Ahead of the New York bell, the DJIA and S&P 500 are called to open up 0.2%, while the NASDAQ Composite is indicated to open up 0.3%.
There is a host of data still to be released Tuesday.
Markit is due to release its final manufacturing activity reading for the US at 1445 BST. Economist expectations are for the index to be downwardly revised to 57 in June from the flash estimate of 57.5. Meanwhile, results from the Institute for Supply Management's national manufacturing survey are due shortly after at 1500 BST. Economists expect the index to be edge up to 55.6 in June from 55.4 in May.
The US Commerce Department will release its construction spending report for May at 1500 BST. The consensus estimate calls for a 0.5% month-on-month increase in the construction spending in May, following a 0.2% rise in April.
In the forex market, the pound continues to trade strongly against its major rivals, having jumped in the wake of a stronger-than-expected reading of the UK manufacturing purchasing managers index for June.
Ahead of the US stock market open and US macroeconomic data, the pound trades at USD1.7150, EUR1.2529, CHF1.5212, and JPY174.110. The euro trades at USD1.3685.