Markets rally after Chinese factories return to growth – business live

All the day’s economic and financial news, including new manufacturing reports from around the world

France’s factories have posted another month of solid growth too, as demand and business confidence rose.

The French manufacturing PMI has jumped to 54.8 in June, from 53.8 in May – that shows a faster expansion, but not quite as pacy as expected.

*FRANCE JUNE MANUFACTURING PMI RISES TO 54.8; PRELIM. 55

“A strong degree of business optimism was also a key feature of the latest survey, perhaps buoyed by reduced political uncertainty following the conclusion to June’s legislative elections and robust economic conditions in the Eurozone.”

Just in…Italy’s factory sector picked up last month, thanks to a surge of new orders.

Italian Manufacturing PMI: 55.2 vs exp 55.3; prev 55.1

A strong end to the quarter with a pickup seen in output & exports pic.twitter.com/cNtX3AMqMj

European stock markets are rallying this morning, helped by the pickup in Chinese factory growth last month.

The main indices have all risen in early trading. London’s FTSE 100 has jumped by 42 points, or 0.6%, to 7355.

It’s manufacturing Monday, and with China’s Caixin PMI just about climbing out of contraction territory the European indices got off to a strong start.

Having neared 2 month lows last Friday there was plenty of room for the FTSE to bounce back this morning and bounce back it did, rising more than half a percent to sit just below 7350. The thrust of the UK index’s growth stemmed from the commodity sector, itself boosted by the latest 0.5% jump from Brent Crude, the black stuff now trading at $49 per barrel for the first time in around a month.

Breaking: Spain’s factory data has missed forecasts, but still shows solid expansion.

The Spanish manufacturing PMI has come in at 54.7, down from May’s 55.4.

“June saw a continuation of the recent strong performance of the Spanish manufacturing sector, with growth remaining elevated. The first half of the year has been impressive, with no real sign among the latest data that rates of expansion are running out of steam heading into the second half.

“One thing that is on the wane is inflation, with both input costs and output prices rising at the weakest rates since late-2016. This should help firms maintain competitive pricing, enabling them to take advantage of improving customer demand.”

Spanish manuf PMI headline index down but sill no sign of cooling. Output, new orders up; employment at near-record high.

The Russian PMI is a worry.

Growth in Russia’s manufacturing sector almost fizzled out last month, with its PMI dropping to an 11-month low of 50.3, from May’s 52.4.

Norway’s manufacturing base just posted its strongest growth in five years, according to its PMI report:

#Norway
Manufacturing #PMI reaching the highest level since March 2012 => fine details => points to further acceleration in manufacturing! pic.twitter.com/XzwVxbOhwD

tEconomics: #Sweden Swedbank Manufacturing PMI at 62.4 https://t.co/dWPLvAZMek pic.twitter.com/DnA8UikulB

$SEK: Swedish PMI better than expected, helped not only by a robust macro momentum in Europe, but also by delayed krona weakness pic.twitter.com/oP3b3TSkkV

Other Asian countries have followed China’s lead, and reported manufacturing growth last month.

Reuters has the details:

Factory Purchasing Managers’ Indexes for South Korea, Japan,Taiwan Vietnam and India all remained above the 50-mark that separates contraction from expansion on a monthly basis.

And all of these indexes, except for Japan and India, rose from the previous month, indicating an acceleration in expansion.

Metal prices have jumped this morning, following the news that Chinese factories returned to growth last month. Aluminium and copper are both rallying.

$DBB BASE METALS: Aluminum Extends Rally as China PMI Beats Estimates$HG_F #copper #aluminium pic.twitter.com/y18QSVk94v

China got PMI Day off to a decent start, by reporting its fastest factory growth in three months.

“The manufacturing sector recovered slightly in June, but based on the inventory trends and confidence around future output, the June reading was more like a temporary rebound, with an economic downtrend likely to be confirmed later.”

Good morning, and welcome to our rolling coverage of the world economy, the financial markets, the eurozone and business.

We’re getting a healthcheck on the world’s factories today, as data firms release their monthly Purchasing Managers Index reports.

Happy PMI day!

With more hawkish noises coming from certain quarters of the Bank of England’s Monetary Policy Committee in recent days, markets are likely to be especially sensitive to the PMI surveys this month.

As they were conducted mid-month in June, it should be expected that the results incorporate businesses’ views about the impact of the indecisive general election result on 8 June.

Looking ahead, highlights include Eurozone, UK and US mfg PMIs, US ISM and construction spending.

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