UK stocks are headed for a higher open today. The UK’s blue chip FTSE 100 index is expected to open at 5,137, or 42 points (0.8 percent) above yesterday’s close.
Equities in Asia and Europe received a little support from today’s HSBC China purchasing managers index (PMI), which edged up from 49.3 in July to 49.8 in August. While indicating a contraction in manufacturing activity in China, the figure was slightly ahead of projections.
The markets are now looking to Fed chairman Ben Bernanke’s speech at the upcoming symposium of the Federal Reserve, which will take place in Jackson Hole, Wyoming on Friday.
“If markets do in fact push higher into the meeting, then they could easily be setting themselves up for failure; if Ben Bernanke doesn’t announce any further form of stimulus, then we could easily see the money flow straight back out of the equities, with panic returning,” said research analyst at IG Markets Ben Potter.
Today’s macroeconomic calendar is very thin with no notable updates due out in Europe or the US.
Across the Atlantic, the Dow Jones Industrial Average (DJIA) closed with a 37 point (0.35 percent) gain at 10,854, while the broader S&P 500 index rose marginally to end the session at 1,123.
Asian markets were in buying mode today.
Japan’s benchmark Nikkei 225 index rallied 96 points (1.1 percent) to reach 8,723 just before close of play, while China’s Shanghai Composite Index stood 19 points (0.75 percent) higher at 2,534 at the end of the session.