(Alliance News) - Stocks in London are set to open higher on Monday, ahead of a data-heavy week, kicked off by a slew of manufacturing purchasing managers' index readings.

In early economic news, data is already out from Japan and China. The former saw its manufacturing economy improved amid job creation, with the headline index at 50.4 in May from 49.6 in April. Growth in the latter accelerated, with the comparative index score for May at 51.7 points, up 0.3 points from 51.4 in April and its highest since June 2022.

In corporate news, GSK defended its heartburn medication, after a judge found the evidence backing up claims that Zantac - or ranitidine - causes cancer is legitimate and can be heard by juries.

Here is what you need to know at the London market open:

----------

MARKETS

----------

FTSE 100: called up 0.9% at 8,351.90

----------

Hang Seng: up 2.1% at 18,466.73

Nikkei 225: closed up 1.2% at 38,935.03

S&P/ASX 200: closed up 0.7% at 7,754.90

----------

DJIA: closed up 574.84 points, 1.5%, at 38,686.32

S&P 500: closed up 42.03 points, 0.8%, at 5,277.51

Nasdaq Composite: slipped 2.06 points to 16,735.02

----------

EUR: up at USD1.0852 (USD1.0844)

GBP: up at USD1.2741 (USD1.2719)

USD: up at JPY157.39 (JPY157.24)

Gold: down at USD2,318.00 per ounce (USD2,328.36)

(Brent): down at USD80.80 a barrel (USD81.30)

(changes since previous London equities close)

----------

ECONOMICS

----------

Monday's key economic events still to come:

09:30 EDT Canada manufacturing PMI

10:00 CEST eurozone manufacturing PMI

09:50 CEST France manufacturing PMI

09:55 CEST Germany manufacturing PMI

09:30 BST UK manufacturing PMI

09:45 EDT US manufacturing PMI

10:00 EDT US ISM manufacturing PMI

----------

Diane Abbott, the first black woman to become a British MP and a left-wing figurehead, on Sunday said she would run for Labour in July's election after days of confusion. She also denied press reports that Labour was offering places in the UK parliament's unelected upper chamber, the House of Lords, to MPs if they stood down from running in the general election. The internal ruckus over her situation exposed long-standing factional splits within the main opposition party, which is widely expected to return to power for the first time since 2010. Labour leader Keir Starmer, on course to become the next prime minister with polls putting his party far ahead of the ruling Conservatives, said on Friday she was "free" to stand for his group, AFP reports.

----------

Opposition Labour party leader Keir Starmer pledged Saturday to cut the number of migrants entering Britain, in response to one of the key issues going into the country's general election. Prime Minister Rishi Sunak's government has seen net regular migration levels soar to 685,000 last year – more than three times the level in 2019, when the Conservatives won an election pledging to cut the figure. Migration has become a contentious topic, with 18% of people saying it is the single most important election issue, according to a YouGov poll released Saturday. While Starmer did not provide a timeline or exact figures for bring down migration numbers, he said passing laws to curb it would be a top priority, The Sun reported.

----------

Growth in the Chinese manufacturing sector accelerated in midway into the second quarter, survey results from S&P Global showed on Monday. The Caixin China general manufacturing purchasing managers' index score for May was 51.7 points, up 0.3 point from 51.4 in April and its highest since June 2022. The increased reading above the neutral score of 50 points also marked the fourth consecutive month of accelerated growth in the sector as the overall market continued to improve. Sentiment among Chinese manufacturers "remained positive" in May, with survey respondents hoping that market demand can improve "both locally and abroad to support higher production in the year ahead", S&P Global said.

----------

The health of Japan's manufacturing economy improved in May amid job creation, S&P Global data showed Monday. The headline au Jibun Bank Japan manufacturing purchasing managers' index improved to 50.4 in May from 49.6 in April. Climbing above the 50-mark separating growth from contraction, it indicates the manufacturing sector swung to growth. It is however slightly lower than the flash estimate of 50.5 posted on May 23.

----------

BROKER RATING CHANGES

----------

JPMorgan raises St James's Place to 'overweight' (neutral) - price target 730 (637) pence

----------

Goldman Sachs raises Great Portland to 'buy' (neutral) - price target 430 (340,45) pence

----------

Berenberg raises Ricardo to 'buy' (hold) - price target 730 (400) pence

----------

COMPANIES - FTSE 100

----------

GSK asserted that there is no scientific consensus that ranitidine increases risk of any cancer, and said it would continue to vigorously defend itself against all claims. The firm plans to immediately seek appeal to a ruling by the Delaware State Court, whereby a judge found the evidence backing up claims that Zantac - or ranitidine - causes cancer is legitimate and can be heard by juries. GSK, however, said that the ruling contradicts the Federal Court's Multidistrict Litigation ruling under the same legal standard, and emphasised the ruling does not determine liability. Also on Monday, the firm released trial results, noting that its Blenrep combination reduced the risk of disease progression or death by about 50% for relapsed or refractory multiple myeloma, and versus standard care.

----------

COMPANIES - FTSE 250

----------

Sirius Real Estate said pretax profit rose 32% to EUR115.2 million from EUR87.0 million for the year ended March 31. Revenue was up 6.9% to EUR288.8 million from EUR270.1 million. Sirius declared a second half dividend of 3.05 EUR cents per share, up 2.3% from 2.98 cents year-on-year. Chief Executive Officer Andrew Coombs said: "Looking ahead, our outlook remains positive: our active asset recycling programme, strong cash position and post balance sheet issuance of EUR59.9 million of debt means our balance sheet is in rude health. There remain many levers we can pull to unlock value and grow occupancy and rental income within our current portfolio through our successful asset management programme, and we remain well positioned to fuel our accretive pipeline, supporting our next phase of growth and deliver attractive returns for shareholders."

----------

OTHER COMPANIES

----------

MP Evans Group completed the purchase of a 5% minority holding in the majority of its Indonesian subsidiary trading companies. The total cost of the purchase was USD14.0 million, based on an agreed price of USD9,000 per planted hectare, adjusted for other assets and liabilities in the relevant subsidiary companies. The firm's minority partner, MP Evans said, has used the majority of the proceeds to repay an outstanding USD8.0 million loan from the group and, as a result, the net cash outflow it received from the transaction was USD6.0 million.

----------

Taseko Mines said that operations at its Gibraltar Mine in British Columbia, Canada have been suspended, after collective bargaining with Gibraltar's union representatives ended late yesterday without an agreement being reached. Gibraltar's unionised workforce informed the company that they intended to take strike action as of midnight on Friday. Taseko opted to systematically shut down mining and milling operations prior to the midnight deadline, and the mine is now on care and maintenance with only essential staff operating and maintaining critical systems.

----------

By Holly Beveridge, Alliance News reporter

Comments and questions to newsroom@alliancenews.com

Copyright 2024 Alliance News Ltd. All Rights Reserved.