It’s a busy week on the macro agenda with several important indicators out from the States, including reports from the manufacturing, construction and housing sectors, as well as reading of consumer confidence and employment.

“With Thanksgiving out of the way and 16.5 trading days to Christmas, it is decision time for investors: take profits; look for new opportunities; or stick it out until the New Year,” said Alastair Winter, Chief Economist at Daniel Stewart & Co.

With all the US economic data due in the coming days, Winter said that the November non-farm payrolls figures on Friday will be the “big number of the week”.

Anything close to October’s surprise 204,000 jump likely to “get pulses racing and equity prices falling” given that it will increase speculation surrounding an impending taper of stimulus by the Federal Reserve.

“Needless to say, the FOMC will be taking a rather broader approach and there is a bundle of other economic data in the pipeline before its meeting on December 17-18th,” Winter said. “For the record, I doubt any of this data will be conclusive but on the other hand it does appear that a consensus is forming within the FOMC to that monthly purchases of $85bn are simply unsustainable, whatever the data may say.”

Stocks across Europe were trading lower on Monday morning despite better-than-expected economic figures from China, where the manufacturing sector continued its steady expansion in November.

The official government purchasing managers’ index (PMI) published by the National Bureau of Statistics (NBS) on Sunday managed to maintain a level of 51.4, despite expectations for a drop to 51.1. Readings over 50 imply an expansion in the sector. Meanwhile, the November PMI compiled by HSBC and Markit Economics dropped only slightly to 50.8 from October’s reading of 50.9. Analysts had forecast a larger drop to 50.5.

Energy companies in focus

Both Centrica and SSE rose this morning after the government announced changes over the weekend to obligations that are paid through energy bills to offset the rising cost of living across the UK. Both utility providers said that they would pass on savings to customers, with bills set to rise by a smaller rate than initially estimated.

SSE’s share price was over 1% higher early on, while Centrica was being held by back a downgrade by Deutsche Bank to ‘hold’.

High Street retailer Debenhams was firmly lower this morning after Barclays Capital cut its rating on the stock to ‘underweight’, while AZ Electronic Materials was lifted by Deutsche Bank to ‘buy’.

Mining stocks were under pressure as commodity prices declined with precious metals peers Fresnillo and Randgold tracking gold and silver lower early on.

Investment and wealth management firm Rathbone Brothers edged higher despite the news that its long-running Chief Executive Andy Pomfret is to retire next year.

FTSE 100 – Risers

SSE (SSE) 1,339.00p +0.90%
Lloyds Banking Group (LLOY) 78.04p +0.83%
Experian (EXPN) 1,136.00p +0.80%
Associated British Foods (ABF) 2,306.00p +0.57%
Centrica (CNA) 339.80p +0.44%
Wolseley (WOS) 3,304.00p +0.33%
Barclays (BARC) 272.60p +0.33%
Unilever (ULVR) 2,476.00p +0.28%
Tate & Lyle (TATE) 787.00p +0.25%
Compass Group (CPG) 922.50p +0.16%

FTSE 100 – Fallers

Fresnillo (FRES) 811.50p -2.58%
Sainsbury (J) (SBRY) 397.70p -2.38%
Randgold Resources Ltd. (RRS) 4,260.00p -1.98%
CRH (CRH) 1,523.00p -1.93%
Vedanta Resources (VED) 868.00p -1.92%
Anglo American (AAL) 1,323.50p -1.89%
Aberdeen Asset Management (ADN) 483.00p -1.89%
Mondi (MNDI) 987.00p -1.79%
Tesco (TSCO) 341.75p -1.78%
Aggreko (AGK) 1,581.00p -1.50%

Source: ShareCast