Futures on major U.S. stock indices point to higher opening on Monday as better than expected Chinese manufacturing data offset weak economic reports on US personal spending and income.
Futures on the S&P 500 are up 0.46 percent, futures on the Dow Jones Industrial Average are up 0.28 percent and Nasdaq100 futures are up 0.40 percent.
Chinese manufacturing activity expanded at the fastest pace in six months in October signalling higher inflationary pressures in the near term in the world's second biggest economy. Chinese manufacturing purchasing managers index (PMI) rose to 54.7 in October from 53.8 in the previous month.
The US Commerce Department reported that US consumer spending rose less-than-expected in September as income fell for the first time in 14 months. Spending rose 0.2 percent in September after a 0.5 percent gain in August and against analysts estimation of 0.4 percent. Monthly core PCE price index was flat in September against 0.1 percent gain in August.
After the opening bell, ISM manufacturing for the month of October will be released and is expected to show a slight deterioration in activity. Economistrs are forecasting that ISM manufacturing index for the month of October will be 53.60 against 54.40 in the previous month.
On Friday, stocks ended flat in choppy trading as investors weighed a 2 percent annual gain in third quarter GDP ahead of next week’s crucial midterm elections and a possible decision by the Federal Reserve to unveil a new round of quantitative easing.
The euro declined 0.22 percent to 1.3916 against the dollar and the yen gained 0.02 percent against the greenback.
Crude oil futures gained 0.95 percent to $82.20/barrel and gold futures advanced 0.15 percent.
European stock marketspared earlier gains and are currently trading mixed with FTSE 100 down by 3.24 points, DAX30 up by 8.02 points and CAC 40 down by 16.74 points.
