Thursday preview: China manufacturing and services PMIs in spotlight

The market will be zooming in on China manufacturing and services data on Thursday amid worries about the slowdown in the world’s second largest economy.

The official purchasing managers’ index on China manufacturing and services will be released along with the Caixan’s PMI on the two industries.

Danske Bank said it expect to see a slight decline in the official PMI from 49.7 in August to 49.5 in September, which would be the lowest level since August 2012. A reading below 50 signals a contraction while a level above that indicates expansion in activity.

“The Caixin service PMI dropped last month to 51.5 and we expect a further drop in September to 51.0 as the weakness in the industrial sector should have some spill-over to service as well,” Danske added.

Michael Hewson, chief market analyst at CMC Markets, said it remains unclear how feeble economic conditions in China are but the weakness of the manufacturing sector “remains a real concern”.

Manufacturing reports on the UK and the US will also be released on Thursday. Markit’s UK manufacturing PMI is forecast to fall to 51.3 in September from 51.5 a month earlier.

ISM’s US manufacturing index is expected to drop to 50.6 in September from 51.1 in August.

The US economic data calendar will also including the release of weekly jobless claims and construction spending figures.

Federal Reserve official John Williams, who has called for an interest rate hike this year, will speak after close of trading in Salt Lake City.

Williams on Monday signalled that the Fed should not wait much longer to raise rates. The Fed meets in October and December.

"When you have a high-pressure economy, with unsustainably high levels of economic activity for a long period of time, people may make decisions based on excessive optimism, rather than sound economic basics," Williams warned. "One lesson I have taken from past episodes is that once the imbalances have grown large, the options to deal with them are limited."

Thursday 01 October

INTERIM DIVIDEND PAYMENT DATE
Amlin, Avesco Group, Churchill China, General Accident (Prf), Hammerson, HSS Hire Group , Jardine Lloyd Thompson Group, Novae Group, Phoenix Group Holdings (DI), Portmeirion Group, Robinson

INTERIM EX-DIVIDEND DATE
32Red, AA , Advanced Medical Solutions Group, Air Partner, Barr (A.G.), Bodycote, BrainJuicer Group, Burford Capital , Capital & Regional, Cdialogues , Centrica, Charlemagne Capital Ltd., Fairpoint Group, Fisher (James) & Sons, Flowtech Fluidpower, Good Energy Group, Highland Gold Mining Ltd., Hunters Property , Huntsworth, IDOX, Inmarsat, Intertek Group, John Laing Group , Keywords Studios, Maven Income & Growth 2 VCT, Morgan Sindall Group, Morrison (Wm) Supermarkets, Mortgage Advice Bureau (Holdings) , NAHL Group, Netplay TV, Safestyle UK , Smurfit Kappa Group, Somero Enterprises Inc. (DI), Stilo International, Trinity Mirror, XLMedia

QUARTERLY PAYMENT DATE
GlaxoSmithKline

QUARTERLY EX-DIVIDEND DATE
Albion Technology & General VCT, British Land Company, Investors Capital Trust 'A' Shares, Mercantile Investment Trust (The), Torchmark Corp.

INTERNATIONAL ECONOMIC ANNOUNCEMENTS
Auto Sales (US) (15:00)
PMI Manufacturing (EU) (09:00)

GMS
Punch Taverns, Vmoto Limited (DI), Zoopla Property Group (WI)

FINALS
Bluefield Solar Income Fund Limited

SPECIAL EX-DIVIDEND PAYMENT DATE
JPMorgan Mid Cap Inv Trust, Maven Income & Growth 2 VCT

AGMS
Artemis Alpha Trust, Doric Nimrod Air One Ltd, Doric Nimrod Air Three Limited Red Ord Pref Shs Npv, Nimrod Sea Assets Limited, Sacoil Holdings (DI)

TRADING ANNOUNCEMENTS
ITE Group

UK ECONOMIC ANNOUNCEMENTS
PMI Manufacturing (09:30)

FINAL DIVIDEND PAYMENT DATE
Park Group, PZ Cussons

FINAL EX-DIVIDEND DATE
Alumasc Group, Eckoh, Hansard Global, HML Holdings, IG Group Holdings, JPMorgan Mid Cap Inv Trust, Murgitroyd Group, Smith (DS), United Carpets Group, WYG