News Column

Upbeat Chinese Data May Lead To Early Strength On Wall Street

July 1, 2014

WASHINGTON (Alliance News) - After ending the previous session narrowly mixed, stocks are likely to move to the upside in early trading on Tuesday. The major index futures are currently pointing to a higher open for the markets, with the Dow futures up by 48 points.

The upward momentum for the markets is partly due to the release of Chinese manufacturing data showing faster growth in the sector.

A report from the China Federation of Logistics and Purchasing and the National Bureau of Statistics showed that their reading on Chinese manufacturing activity climbed to a six-month high of 51.0 in June from 50.8 in May.

Revised estimates released by Markit and HSBC confirmed that Chinese manufacturing activity rebounded in June, with their index rising to 50.7 from 49.4.

Meanwhile, a separate report from Markit showed that manufacturing activity in the euro area expanded at a slower pace in June.

The manufacturing index for the euro zone fell to 51.8 in June from 52.2 in May, although a reading above 50 indicates the twelfth consecutive month of growth.

Not long after the open, the Institute for Supply Management is scheduled to release its report on US manufacturing activity in the month of June.

Economists expect the ISM's manufacturing index to edge up to a reading of 55.8 in June after climbing to 55.4 in May.

The Commerce Department is also scheduled to release a report on construction spending in the month of May, which is expected to rise by about 0.5%.

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Source: Alliance News

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