(Alliance News) - Stocks in London are set to open flat on Monday, as the focus moves to PMI prints after a US government shutdown was averted over the weekend.

IG says futures indicate the FTSE 100 to open down 3.78 points at 7,604.3 on Monday. The index of London large-caps rose 6.23 points, or 0.1%, at 7,608.08 on Friday.

The US Congress passed an 11th-hour funding bill Saturday to keep federal agencies running for another 45 days and avert a costly government shutdown – although the deal left out aid to war-torn Ukraine requested by President Joe Biden. Three hours before the midnight deadline, the Senate voted to keep the lights on through mid-November with a resolution that had advanced earlier from the House of Representatives in a day of high-stakes brinkmanship on Capitol Hill.

"Republican and Democrats kicked the can down the road and reset the clock for another 45 days until 17th November when we're likely to have to go through the same political circus. Nonetheless the fact that US lawmakers have bought themselves more time has come as a relief," said CMC Markets' Michael Hewson.

The dollar was stronger in early exchanges in Europe.

Sterling was quoted at USD1.2190 early Monday, lower than USD1.2207 at the London equities close on Friday. The euro traded at USD1.0568, lower than USD1.0585. Against the yen, the dollar was quoted at JPY149.77, up versus JPY149.30.

The focus for Monday will be on the latest purchasing managers' index readings from major economies, with the eurozone at 0900 BST, the UK at 0930 BST and the US at 1445 BST.

In China and Hong Kong, financial markets are closed for Golden Week.

Business activity in China saw a marginal increase in September, according to the latest survey data from Caixin. The composite purchasing managers' index, which measures the manufacturing and services sectors, eased to 50.9 points in September from 51.7 the month before. The services PMI fell to 50.2 from 51.8, while manufacturing fell to 50.6 from 51.0.

"Total new order growth also moderated in September, with both manufacturers and service providers recording only marginal increases in sales. On the employment front, renewed job shedding at goods producers was largely offset by a slight increase in service sector headcounts," S&P Global said.

In Japan on Monday, the Nikkei 225 index in Tokyo was up 0.1%. The au Jibun Bank PMI indicated a slight worsening in Japanese manufacturing, as the indicator slipped to 48.5 from 49.6. Meanwhile, the S&P/ASX 200 in Sydney closed down 0.2%.

Gold was quoted at USD1,842.60 an ounce early Monday, lower than USD1,856.33 on Friday. Brent oil was trading at USD92.29 a barrel, lower than USD92.64.

In the US on Friday, Wall Street ended mostly lower, with the Dow Jones Industrial Average down 0.5%, the S&P 500 down 0.3% and the Nasdaq Composite up 0.1%.

The local corporate calendar has full-year results from flooring manufacturer James Halstead.

By Elizabeth Winter, Alliance News senior markets reporter

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