Topical: Positive economic data in China
Excerpt
08:36am: Miners lead FTSE 100 higher
Mining stocks are leading the FTSE 100 higher after a closely watched private survey of Chinese factory activity showed a surprise rise in manufacturing activity in November.
Caixin’s China general manufacturing purchasing managers’ index rose to 50.7, indicating a month-on-month increase in activity and well above the 49.3 forecast by economists.
Factories were supported by a rise in domestic orders, while export activity declined at a faster pace than in the previous month.
The figures contrast with the official PMI released on Thursday, which showed activity contracting for a second month. The official PMI puts a greater emphasis on larger, state-owned companies.
Duncan Wrigley at Pantheon Macroeconomics stressed that while “erratic” the Caixin PMI was more optimistic than the official gauge for November.
Wrigley noted cost pressures are abating and firms have a reasonably rosy 12-month outlook.
Anglo American rose 4.5%, Rio Tinto rose 2.7%, Antofagasta rose 2.3% and Glencore rose 2.0%.
Separately, UBS moved Anglo American and Antofagasta to ‘buy’ from ‘neutral’.
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Mining stocks jumped after a closely watched private survey of Chinese factory activity showed manufacturing defying expectations and expanding in November, buoyed by stronger demand.
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