Higher Open Likely For US Markets, Oil Up

Higher open likely for the U.S markets Monday after key stock index futures rallied. The stock futures jumped on the back of strong manufacturing data from China.

At around 6:20 a.m. ET, Dow futures moved up more than 150 points, with the S&P 500 and Nasdaq also in positive territory.

The focus has been on the latest economic figures from China. A private survey showed expansion in the country’s manufacturing activity in March and was the fastest in eight months.

The figures gave big relief to investors who were battling fears of a global economic downturn.

The change comes in contrast to the scene last week when equities came under pressure from bond market signals on an impending U.S. recession.

The U.S. and China concluded the latest round of trade talks and China put forth proposals to address contentious issues including forced technology transfers.

On Monday new data on U.S. retail sales, manufacturing numbers and business inventories are expected.

Oil price jumps

Oil prices surged Monday after concerns on supplies dominated fears of a slowing global economy. Brent crude was up by 43 cents, or 0.6 percent, at $68.01 a barrel by 0214 GMT.

The U.S. West Texas Intermediate (WTI) futures were up 32 cents or 0.5 percent to $60.46 barrel making a 32 percent gain in the January-March period.

Supply cuts by members of the Organization of the Petroleum Exporting Countries (OPEC) and other major producers had been pushing prices overshadowing concerns on growth and resulting slump in demand.

Future gains will be limited by potential softness in the global economy and the ability of U.S. oil producers to ramp up production when prices jump, said Phin Ziebell, senior economist at National Australia Bank in Sydney.

Asian stocks up

Asian markets zoomed Monday after data released over the weekend showed China’s economic activity bounced back in March.

Both Caixin/Markit Manufacturing Purchasing Managers’ Index and China’s official Purchasing Managers’ Index (PMI) grew in March, surprising analysts.

Mainland Chinese shares soared with the Shanghai composite going up 2.58 percent while the Shenzhen component was higher by 3.64 percent. Hong Kong’s Hang Seng index was up 1.66 percent.

Japan’s Nikkei 225 jumped 1.43 percent while the Topix index gained 1.52 percent. South Korea’s Kospi added 1.29 percent and Australia’s ASX 200 rose 0.59 percent with most sectors making gains.

Euro stocks and gold make gains

In Europe, Stoxx 600 soared 0.8 percent with every sector in positive territory. Strong China data for March pushed up basic resources by more than 2 percent.

Gold prices moved up Monday after dollar shed its three-week highs. But gains were capped as equities soared on signs of progress in the Sino-U.S. trade talks and Chinese data.

Spot gold jumped 0.1 percent at $1,293.15 per ounce by 0337 GMT. But U.S. gold futures came down 0.1 percent at $1,297.90 an ounce.