(MENAFN- Khaleej Times)Manufacturing index up at highest level this year
Seoul — Global stocks were higher on Thursday as expectations for solid US jobs data overshadowed worries about Greek debt.
European stocks opened sharply higher. Britain’s FTSE 100 was up 1.3 per cent to 6607.79 and France’s CAC 40 jumped two per cent to 4885.45. Germany’s DAX climbed 2.3 per cent to 11187.75. Futures showed that Wall Street was set for a tepid start. S&P 500 futures rose 0.1 per cent while Dow futures gained 0.1 per cent.
Payroll processor ADP said on Wednesday that businesses added 237000 jobs last month up from 203000 in May and the most since December. A separate survey showed US manufacturing growth improved in June. The Institute for Supply Management a trade group of purchasing managers said its manufacturing index rose to the highest level this year.
The ADP report is seen as an indicator of the US government’s monthly jobs report which will be released later Thursday. The consensus forecast is that employers added a solid 233000 jobs and that the unemployment rate dipped to 5.4 per cent from 5.5 per cent from May.
“The latest news from Greece was somewhat ambiguous” Mizuho Bank said in a commentary. “Markets appear to have shifted attention to US data releases albeit temporarily” it said. “ADP was much better than expected and this also suggests that (nonfarm payrolls) today may be strong.”
Japan’s Nikkei 225 rose one per cent to 20522.50 and South Korea’s Kospi added 0.5 per cent to 2107.33. Hong Kong’s Hang Seng gained 0.1 per cent to 26282.32 and Australia’s S&P/ASX 200 advanced 1.5 per cent to 5599.80. Stocks in Southeast Asia and New Zealand were also higher. But China’s Shanghai Composite slumped 3.5 per cent to close at 3912.77.
Benchmark US crude lost 14 cents to $56.82 per barrel in electronic trading on the New York Mercantile Exchange. The contract dropped $2.51 to close at $56.96 a barrel in New York on Wednesday. Brent crude a benchmark for international oils used by many US refineries gained 31 cents to $62.32 a barrel in London.The euro strengthened to $1.1079 from $1.1041 in the previous session. The dollar rose to ¥123.55 from ¥123.24.
Meanwhile Indian stocks fell for the first time in three days as investors awaited a Greek referendum on creditors’ proposals this weekend.
The Sensex lost 0.3 per cent to 27945.80 after changing directions at least 15 times. The 50-stock CNX Nifty index fell 0.1 per cent to 8444.90.
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