Chinese manufacturing data starts a busy week

THIS is set to be a busy week as market participants get to grips with a pile of economic data, US corporate earnings and the second act of the EU summit this Wednesday.

CHINA MANUFACTURING PMI
The first thing to confront traders this morning will be China’s HSBC Flash Manufacturing PMI. This can be a big market-mover as it gives an early clue to China’s manufacturing performance.

The PMI has indicated contraction for three consecutive months and another reading below 50 will raise concerns about the rate of China’s slowdown.

US HOUSING MARKET DATA DUE
Later this week we have more data covering the US housing market plus the first look at US third quarter GDP.

GFT quotes two-way prices on stock indices around the clock, even when the underlying markets are closed. The FTSE 100 index is called to open up 12 points at 5500. The German DAX is expected to open up 14 points at 5995 and the French CAC 40 is forecast to open up 10 points at 3181.

DELAYED EU SUMMIT BEGINS
On Wednesday the second part of the delayed and extended EU summit takes place. Investors are hoping that European policymakers will come up with a package that addresses a bailout fund for banks, haircuts on Greek sovereign debt and a constitutionally acceptable method of leveraging the European Financial Stability Facility.

On top of this, the US third quarter earnings season moves up a gear with around 1,000 corporations expected to announce their results this week.

Big names include Amazon, BP, Boeing, Broadcom, Caterpillar, Coca-Cola, ConocoPhillips, Exxon Mobil, Ford, Merck, Royal Dutch Shell and Texas Instruments.

Martin Slaney is director of global product management at GFT