Before the open – 02/08

Asian shares crept up further last night on the back of strong factory data from the US and the news that major central banks would be keeping monetary stimulus in place.

US stocks jumped to record highs yesterday after manufacturing PMI, as measured by Markit and the Institute for Supply Management both beat expectations (rising to a respective 53.7 and 55.4 – above 50 indicates growth).

This had a knock-on effect on Asian markets. The FTSE is expected to move up again this morning, with City economist David Buik predicting an open 17 points higher and other estimations ranging from an increase of between 15 and 25 points.

The key thing to watch out for today is US unemployment data, which could provide further clues to the timeline of the Federal Reserve's tapering policy.

Key events today:

UK July construction purchasing managers’ index at 09:30. Expected to increase from 51.0 to 51.6.

Eurozone June producer price index at 10:00. Expected to increase from -0.1 per cent to 0.2 per cent year-on-year. Monthly growth is expected to increase from -0.3 per cent to 0 per cent.

US July average hourly earnings at 13:30. Expected to stay flat at 2.2 per cent year-on-year. Monthly figure expected to fall from 0.4 per cent to 0.2 per cent.

US July nonfarm payrolls at 13:30. Expected to fall from 195,000 to 184,000.

US June personal income at 13:30. Expected to stay flat at 0.5 per cent.

US June core personal consumption expenditure at 13:30. Expected to stay flat at 1.1 per cent year-on-year.

US June personal spending at 13:30. Expected to grow from 0.3 per cent to 0.5 per cent.

US July unemployment rate at 13:30. Expected to fall from 7.6 per cent to 7.5 per cent.