US stocks mostly held tiny gains today, recovering from earlier losses as a closely watched read on manufacturing was reportedly corrected to show more strength than initially indicated.
The Institute for Supply Management’s manufacturing index for May will be corrected to something closer to the Reuters analyst consensus reading of 55.5, not the 53.2 that was originally reported. CNBC, citing ISM sources, originally said it would be changed to 56, but ISM has not yet issued an official correction.
Wall Street fell after the first report, with all 10 S&P 500 sector indexes down for the day at one point, though stocks subsequently rebounded. Material shares turned higher, up 0.4 percent.
The Dow Jones industrial average rose 20.81 points or 0.12 percent, to 16,737.98. The S&P 500 gained 0.79 of a point or 0.04 percent, to 1,924.36. The Nasdaq Composite , however, dropped 9.80 points or 0.23 percent, to 4,232.82.
European shares started the month positively, buoyed by upbeat economic data from China that helped to allay worries about growth rates there.
Basic resources stocks, including miners and other commodity companies, rose 1.5 percent, one of the biggest sectoral gainers, after data showed Chinese factory activity expanded at its fastest pace in five months in May.
Miners, acutely sensitive to the health of the Chinese economy since it is the top metals consumer, had fallen on Friday on concern over China – which, alongside lacklustre growth globally, has deterred recent investment into the sector.
Miners have risen less than 2 percent this year, against a 5.1 percent advance for the STOXX Europe 600. Mining giant Rio Tinto is languishing around 2014 lows while the broader index is trading at its peak for the year.
The pan-European FTSEurofirst 300 index closed up 0.2 percent at 1,380.46 points.
France’s CAC index underperformed the broader market, dipping 0.1 percent, as data showed French manufacturing contracted again in May, having recorded its first two months of growth since 2011 in March and April.
Spain’s blue-chip IBEX gained 0.3 percent after its manufacturing sector expanded at the fastest rate since April 2010.
Meanwhile, Japan’s Nikkei share average climbed to a two-month closing high today after strong Chinese factory data lifted sentiment.
But Dai-ichi Life Insurance Co Ltd tumbled on news that it is in talks to buy a US life insurance company, with investors wondering how the company would fund the acquisition.
The Nikkei ended 2.1 percent higher at 14,935.92, its highest close since April 4.
Dai-ichi Life dropped 5 percent and was the fourth most-traded stock by turnover. The company, Japan’s second-largest private-sector life insurer by premium revenue,is in advanced talks to buy Alabama-based Protective Life.
The broader Topix added 1.6 percent to 1,220.47, while the new JPX-Nikkei Index 400 advanced 1.6 percent to 11,119.19.
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