Market overview: US growth may not be strong enough, El Erian says

1630:Close The Footsie finished the session slightly higher, led by gains in shares of the LSE following a broker upgrade on rival Deutsche Boerse. Oil and select comodity stocks also saw a bid on the back of a slightly stronger than expected reading on the state of China´s manufacturing sector. Macquarie waded in with somewhat positive comments on the outlook for copper and oil prices. Critically perhaps, in the afternoon Mohammed El-Erian warned on CNCB that economic growth in the US may not be sufficient to compensate for weakness in other regions of the world. FTSE 100 up 10.86 points to 6,072.47.

1500: US manufacturers grew in September at their slowest pace in over two years, figures released on Thursday showed. The Institute for Supply Management revealed its manufacturing index declined from 51.1 to 50.2 in August, falling below the 50.6 reading analysts had expected.The figure marked the lowest reading since May 2013, although it remained over the 50 threshold that indicates expansion.

1455: According to the Commerce Department, construction spending increased 0.7% month-on-month in August, compared with analysts’ expectations of a 0.6% gain and unchanged from the previous month. On a year-on-year basis, construction spending increased 13.7%. Residential construction climbed 1.3%, while non-residential construction increased 0.3%, while construction of lodging edged 2.8% higher month-on-month and surged 41.4% year-on-year.

1451: On balance, JP Morgan believes the risk-reward balance has shifted in favour of the stocks that have been heavily hit by emerging market related fears. Nonetheless, they reinstated their coverage of CRH at 'neutral' saying they were mindful that the strong year-to-date performance left little room for disappointment.

1450: The headline seasonally-adjusted Markit Manufacturing Purchasing Managers’ Index (PMI) in September edged up to 53.1 compared with the 53.0 reading reported in the flash estimate published last week. While the final reading was marginally above expectations calling for an unchanged reading, it marked the second-lowest level since October 2013. “The manufacturing slowdown therefore will be insufficient on its own to deter the Fed from hiking rates later this year, but adds a warning light that the pace of economic growth is set to slow as we move into the final quarter of the year,” said Chris Williamson, Markit’s chief economist.

1335: The number of first time unemployment benefits claimants rose by more than expected last week, as new claims rose by 10,000 to 277,000 in the week to 26 September, compared with analysts' expectations for a 270,000 reading.

1138: On the subject of Glencore, Brenda Kelly, Head Analyst at London Capital Group says: "the reassurance from management seems to be aiding equity investor sentiment although the price has stopped shy of taking the 100p marker so far. Bond investors are a little less confident and this is reflected in the inverted CDS curve. Prices for longer-term debt has fallen as investors began to assess the potential recovery values for Glencore debt, most of which is unsecured."

1108: IG analyst David Madden says: "We are expecting the Dow Jones to open 150 points higher, at 16,430. The strong finish in Asia overnight has pulled the US futures market higher, and Janet Yellen’s lack of commentary regarding monetary policy has kept the sellers at bay. Ms Yellen likes to warn from time to time that interest rates will rise soon, but since there were no words of caution last night traders are taking it as a positive sign."

0942: UK manufacturing PMI fell to 51.5 in September from 51.6 the previous month, beating expectations for a reading of 51.3 and above the 50 level that indicates expansion in the sector.

0930: Markit's PMI on Eurozone manufacturing has been revised to 52.3 in September from an initial estimate of 52.5.

0900: The FTSE has opened in positive territory after weak Chinese manufacturing data spurred hopes of further stimulus The government’s official purchasing managers’ index on China manufacturing rose unexpectedly to 49.8 in September from 49.7 August. However, it remained under the 50 level that separates contraction from expansion. Separately, a private survey by Caixin/Markit revealed a drop in PMI manufacturing in September to 47.2 from 47.3 a month earlier. September’s reading marked an upward revision from the initial estimate of 47, which analysts expected to remain unchanged.Meanwhile the official services PMI remained at 53.4 in September while the Caixin/Markit services PMI fell to 50.5 last month from 51.5 in August.