ARBB Arbuthnot Banking Group Plc

By Anna Isaac 

Global stocks moved higher Monday after China's economy showed signs of stabilizing and a key European survey signaled better-than-expected manufacturing conditions.

Futures tied to the Dow Jones Industrial Average rose 0.3%, while the pan-continental Stoxx Europe 600 index edged up 0.2%.

Fresh manufacturing data globally is likely to dominate sentiment on Monday. Two separate surveys of manufacturers in China pointed to improving confidence and demand last month. Factory activity in the euro area also gave cause for cautious optimism, with the rate of contraction easing by more than markets had expected for the 19-nation region.

While economists said it was too early to say that China, the world's second-largest economy, has recovered, markets cheered the fact that another major risk to the global economy seems to be diminishing.

"The bears are receding," said Gregory Perdon, co-chief investment officer at private bank Arbuthnot Latham. "Their rationale for negativity is just getting picked off one after the next."

Mr. Perdon also pointed to remarks made last week by U.S. Federal Reserve Chairman Jerome Powell. "Look at Powell's comments about the glass being more than half full."

Separately, People's Bank of China Gov. Yi Gang said the central bank won't resort to "competitive" quantitative easing, even if interest rates in other major economies approach zero. Growth remains within a reasonable range and inflation is relatively mild overall, Mr. Yi wrote in the Communist Party's main political journal, Qiushi. The Shanghai Composite Index ended the day largely flat.

Meanwhile, Brent crude, the global benchmark for oil prices, rose 2.3% to $61.87 a barrel after Persian Gulf officials said Saudi Arabia will push for an extension to oil-production cuts through mid 2020 at an Organization of the Petroleum Exporting Countries summit this week. The kingdom is targeting prices of at least $60 a barrel, according to a Saudi oil adviser.

Later in the day, investors will ready themselves to parse the U.S. Institute for Supply Management's manufacturing index for November to for any signs of an improvement from October's reading.

The new president of the European Central Bank, Christine Lagarde, is also due to speak in Brussels later in the day.

Yields on U.S. Treasurys rose, with the 10-year at 1.848%, up from 1.778% Friday.

Write to Anna Isaac at anna.isaac@wsj.com

(END) Dow Jones Newswires

December 02, 2019 06:51 ET (11:51 GMT)

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