Friday 1 November 2019 8:38 am

FTSE 100 climbs after Asian stocks hit three-month high on China PMI

European markets ticked up slightly this morning as traders showed slightly more optimism following another week of Brexit uncertainty and US-China tensions.

The FTSE 100, Dax and Cac all rose 0.4 per cent after the opening bell.

The blue chip index turned green today after enduring its steepest losses in nearly a month last night.

The pound is hovering below $1.30.

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Asian shares climbed to three-month highs overnight as a bounce in factory activity in China offset jitters over the trade war with the US.

Rising export orders and higher productions helped boost China’s factory activity, which grew at its fastest pace in more than two years last month.

Hong Kong’s Hang Seng climbed 0.65 per cent and Seoul’s Kospi edged up 0.77 per cent.

However, the Nikkei slipped 0.33 per cent.

The Shanghai Composite gained 0.70 per cent.

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David Madden, market analyst at CMC Markets, said: “The non-farm payrolls report will be closely watched. The announcement will be posted at 12.30 (UK time), and the headline figure is expected to be 89,000, which would be a decline from the 136,000 posted in September.

“Unemployment is tipped to creep up from the 50-year low of 3.5 per cent to 3.6 per cent. Average earnings are expected to edge up to three per cent from 2.9 per cent.

He added: “Broadly speaking, the number of jobs being created has been growing at a slower pace in the past six months. It could be a sign the US economy is cooling, or else it might be because the labour market is close to topping out. The average earnings component will be in focus too as workers who earn more tend to spend more, also a move higher could be sign the jobs market is tightening.”

Both US and European equity markets lost ground yesterday amid fears over the US-China trading relationship.

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