TOKYO (AP) – Stock markets had an upbeat start to the week after stronger-than-expected economic data from Japan and the eurozone. Attention is likely to focus this week on Friday’s release of U.S. growth data, as investors adapt to expectations the Federal Reserve will hike interest rates in December.
KEEPING SCORE: Germany’s DAX gained 0.9 percent to 10,808 and France’s CAC40 was up 0.8 percent to 4,572. The FTSE 100 of Britain rose 0.2 percent to 7,031. U.S. shares looked set to rise, with Dow and S&P 500 futures up 0.4 percent.
JAPAN DATA: Japan posted a trade surplus of 498.3 billion yen ($4.8 billion) in September, compared with a deficit of 18.7 billion yen in August. While exports fell 6.9 percent from a year earlier, pulled lower by anemic demand for autos and machinery, that was better than the forecasts for a decline of more than 10 percent. Meanwhile, a preliminary survey of factory managers showed a fifth straight month of improvement in manufacturing sentiment and the measure for output rose for the first time since January.
EUROZONE GROWTH: A separate survey, by IHS Markit, found that business activity in the 19-country eurozone grew in October at its fastest pace this year. The survey saw a rebound in Germany and found that orders and order backlogs were growing – a good sign for the months ahead.
LOOKING AHEAD: The U.S. growth figures due Friday for the July-September quarter will no doubt be “the highlight of the week,” Chris Weston of IG said in a commentary. “Keep in mind that growth has averaged around 1 percent in the past three quarters, so a snap back to the consensus estimate of 2.5 percent would be welcomed.”