European stocks advanced the most in eight weeks as a gauge of Chinese manufacturing activity exceeded economists’ estimates. U.S. index futures also rose.

In China, a measure of manufacturing from the National Bureau of Statistics and China Federation of Logistics and Purchasing rose to 51 in August from 50.3 in July. That beat the median economist estimate for a reading of 50.6 in a Bloomberg survey. A figure greater than 50 means that activity expanded.

Markit Economics and HSBC Holdings Plc’s purchasing managers’ index for manufacturing in the world’s second-largest economy climbed to 50.1 last month from 47.7 in July.

In Europe, the final reading of a euro-area manufacturing index increased to 51.4 in August, more than the 51.3 median estimate of economists surveyed by Bloomberg. A measure of U.K. factory output rose to 57.2 last month from 54.8 in July. That also exceeded the median economist estimate.

National benchmark indexes climbed in every western-European market except Greece. The U.K.’s FTSE 100 rose 1.4 percent, while Germany’s DAX and France’s CAC 40 gained 1.6 percent.

BHP Billiton and Rio Tinto advanced 2.4 percent to 1,922.5 pence and 4.3 percent to 3,037.5 pence, respectively. A gauge of mining-company shares posted the best performance of the 19 industry groups on the Stoxx 600. Anglo American Plc, which owns Amplats, the world’s largest platinum producer, gained 3.9 percent to 1,536.5 pence.

A purchasing managers’ index for Spain climbed to 51.1 from 49.8 in July, meaning that the country’s manufacturing industry expanded for the first time in 28 months.

Spain’s IBEX 35 Index jumped 1.5 percent. Banco Santander SA and Banco Bilbao Vizcaya Argentaria SA contributed the most to the gauge’s advance, rising 1.7 percent to 5.43 euros and 2.2 percent to 7.38 euros, respectively.

Vodafone gained 3.3 percent to 213.1 pence. The board of Verizon Communications will vote on the terms of the deal today, said the person who asked not to be identified because the details remain private. Europe’s largest mobile-phone operator confirmed yesterday that it has held advanced discussions with Verizon about selling its 45 percent stake in their joint venture for $130 billion.

Telecom Italia SpA, Italy’s biggest telephone company, added 3.9 percent to 55 euro cents. A gauge of telecommunications operators climbed 2.7 percent. BT Group Plc, the biggest fixed-line phone company in the U.K., increased 4 percent to 338.2 pence.

Teleperformance SA climbed 2.9 percent to 35.10 euros. Societe Generale SA raised its recommendation on the French operator of call centers to buy from hold. The brokerage said the shares’ recent decline provides a buying opportunity. The stock has fallen 14 percent since its high on July 18.

Helvetia Holding AG added 3.3 percent to 412 Swiss francs. Switzerland’s fourth-biggest insurer said first-half profit rose because of increased life-insurance sales and an acquisition in France. Net income climbed to 179.5 million Swiss francs ($192 million) in the six months through June, beating the average analyst estimate of 164.4

EUR/USD $1.3200, $1.3250, $1.3270, $1.3320, $1.3400

USD/JPY Y97.50, Y97.85, Y98.00, Y98.50, Y98.55, Y99.00

GBP/USD $1.5500, $1.5595

EUR/GBP stg0.8520

AUD/USD $0.8850, $0.8950, $0.8970, $0.9000, $0.9100

AUD/JPY Y88.00, Y0.8985

The total number of building approvals in Australia was up a seasonally adjusted 10.8 percent on month in July, the Australian Bureau of Statistics said on Monday, standing at 14,304.

That beat forecasts for an increase of 4.0 percent following the upwardly revised 6.3 percent contraction in June (originally -6.9 percent).

On a yearly basis, building approvals surged 28.3 percent - also beating expectations for a jump of 20.0 percent following the upwardly revised 11.8 percent decline in the previous month (originally -13.0 percent).

Private sector building approvals were up 3.9 percent on month and 12.0 percent on year to 8,309.

EUR/USD

Offers $1.3340/50, $1.3290/300, $1.3255/65, $1.3255/60, $1.3235/45

Bids $1.3190, $1.3175/70, $1.3150/40, $1.3120/10

GBP/USD

Offers $1.5680/85, $1.5640/50, $1.5605/15, $1.5600

Bids $1.5555/45, $1.5460/50, $1.5425/20, $1.5410/00, $1.5380

AUD/USD

Offers $0.9100, $0.9080, $0.9045/50, $0.9020

Bids $0.8975/70, $0.8910/00, $0.8890, $0.8880/75, $0.8860

EUR/JPY

Offers Y132.31/42, Y131.95/00, Y131.80, Y131.50

Bids Y130.80/75, Y130.50, Y130.00, Y129.80

USD/JPY

Offers Y100.15/20, Y100.00, Y99.60/80, Y99.50

Bids Y98.55/50, Y98.00, Y97.50

EUR/GBP

Offers stg0.8650/55, stg0.8620, stg0.8590/600, stg0.8570, stg0.8550/55, stg0.8520

Bids stg0.8470, stg0.8450, stg0.8425/20, stg0.8400

European stocks advanced the most in eight weeks as a gauge of Chinese manufacturing activity exceeded economists’ estimates. U.S. index futures and Asian shares also climbed.

The Stoxx Europe 600 Index added 1.6 percent to 302.14 at 10:35 a.m. in London. Standard & Poor’s 500 Index futures expiring this month gained 0.9 percent, while the MSCI Asia Pacific Index climbed 0.7 percent. U.S. markets are closed today for the Labor Day holiday.

In China, a measure of manufacturing from the National Bureau of Statistics and China Federation of Logistics and Purchasing rose to 51 in August from 50.3 in July. That beat the median economist estimate for a reading of 50.6. A figure greater than 50 means that activity expanded.

Markit Economics and HSBC Holdings Plc’s purchasing managers’ index for manufacturing in the world’s second-largest economy climbed to 50.1 last month from 47.7 in July.

Spain’s IBEX 35 Index (IBEX) jumped 1.9 percent. Banco Santander SA and Banco Bilbao Vizcaya Argentaria SA contributed the most to the gauge’s advance, rising 2.2 percent to 5.46 euros and 2.3 percent to 7.38 euros, respectively.

Vodafone gained 3.8 percent to 214.1 pence. The board of Verizon Communications will vote on the terms of the deal today, said the person who asked not to be identified because the details remain private. Europe’s largest mobile-phone operator confirmed yesterday that it has held advanced discussions with Verizon about selling its 45 percent stake in their joint venture for $130 billion.

Telecom Italia SpA (TIT), Italy’s biggest telephone company, added 4.9 percent to 55.6 euro cents. A gauge of telecommunications operators climbed 2.6 percent. BT Group Plc, the biggest fixed-line phone company in the U.K., increased 2.6 percent to 333.9 pence.

Teleperformance SA (RCF) increased 3.6 percent to 35.32 euros. Societe Generale SA raised its recommendation on the French operator of call centers to buy from hold.

FTSE 100 6,505.87 +92.94 +1.45%

CAC 40 3,995.2 +61.42 +1.56%

DAX 8,232.01 +128.86 +1.59%  

EUR/USD $1.3200, $1.3250, $1.3270, $1.3320, $1.3400

USD/JPY Y97.50, Y97.85, Y98.00, Y98.50, Y98.55, Y99.00

GBP/USD $1.5500, $1.5595

EUR/GBP stg0.8520

AUD/USD $0.8850, $0.8970, $0.9000, $0.9100  

Asian stocks gained for a third day after a gauge of China’s manufacturing rose to a 16-month high, boosting investor confidence in the global economic recovery.

Nikkei 225 13,572.92 +184.06 +1.37%

Hang Seng 22,176.99 +445.62 +2.05%

S&P/ASX 200 5,188.3 +53.34 +1.04%

Shanghai Composite 2,098.45 +0.07 0.00%

Fanuc Corp., a maker of controls to run machine tools that earns 72 percent of its revenue in Asia, climbed 2.7 percent.

Billabong International Ltd. surged 14 percent after the Australian surfwear company said Coastal Capital International Ltd. is seeking a board shakeup.

Everbright Securities Co. slumped by as much as the 10 percent daily limit in Shanghai as the company that roiled China’s equity market two weeks ago with errant trades said two executives resigned amid record penalties imposed by regulators after an investigation.

00:00 Australia MI Inflation Gauge, m/m August +0.5% +0.1%

00:00 Australia MI Inflation Gauge, y/y August +2.7% +2.1%

01:30 Australia Building Permits, m/m July -6.3% Revised From -6.9% +4.1% +10.8%

01:30 Australia Building Permits, y/y July -13.0% +20.0% +28.3%

01:30 Australia Company Operating Profits Quarter II +3.5% Revised From +3.0% +1.1% -0.8%

01:45 China HSBC Manufacturing PMI (Finally) August 50.1 50.2 50.1

The yen slid from a two-week high against the euro as Shinzo Abe got backing for a sales-tax increase from panels that urged an increase in stimulus to cushion the economic blow.  Japanese companies’ capital spending was unchanged in the second quarter from a year earlier, a Ministry of Finance report showed today. The median forecast in a survey of economists by Bloomberg News was for a 2.1 percent decline. The Bank of Japan will start a two-day meeting on Sept. 4.

Australia’s dollar gained after a Chinese factory gauge rose to a 16-month high, boosting trade prospects. In China, the Purchasing Managers’ Index of manufacturing rose to 51.0 last month, the highest since April 2012, the National Bureau of Statistics and China Federation of Logistics said in Beijing yesterday. HSBC Holdings Plc and Markit Economics’ PMI for China rose to 50.1 last month from 47.7 in July, final readings released today showed. A reading above 50 indicates growth. China is Australia’s biggest trading partner.

Losses in the 17-nation euro were limited before data forecast to confirm manufacturing in the currency bloc expanded at the fastest pace in more than two years. A final reading on a manufacturing index by Markit Economics based on a survey of purchasing managers will confirm an increase to 51.3 in August, the highest since June 2011, according to analysts surveyed by Bloomberg.

EUR / USD: during the Asian session the pair fell to $ 1.3190

GBP / USD: during the Asian session, the pair rose to $ 1.5565

USD / JPY: during the Asian session the pair rose to Y98.70

European markets although there's insufficient momentum in either direction ahead of the US holiday today. There was some initial focus on Germany, where opposition chancellor candidate Peer Steinbrueck failed to deal a decisive blow to incumbent chancellor Angela Merkel in a highly watched television duel. UK mfg PMI data due at 0828GMT.

00:00 Australia MI Inflation Gauge, m/m August +0.5% +0.1%

00:00 Australia MI Inflation Gauge, y/y August +2.7% +2.1%

01:30 Australia Building Permits, m/m July -6.3% Revised From -6.9% +4.1% +10.8%

01:30 Australia Building Permits, y/y July -13.0% +20.0% +28.3%

01:30 Australia Company Operating Profits Quarter II +3.5% Revised From +3.0% +1.1% -0.8%

01:45 China HSBC Manufacturing PMI (Finally) August 50.1 50.2 50.1

06:30 Australia RBA Commodity prices, y/y August -11.8%

07:30 Switzerland Manufacturing PMI August 57.4 55.9

07:50 France Manufacturing PMI (Finally) August 49.7 49.7

07:55 Germany Manufacturing PMI (Finally) August 52.0 52.0

08:00 Eurozone Manufacturing PMI (Finally) August 51.3 51.3

08:30 United Kingdom Purchasing Manager Index Manufacturing August 54.6 55.2

12:30 Canada Bank holiday

12:30 U.S. Bank holiday

23:01 United Kingdom BRC Retail Sales Monitor y/y August +2.2% +2.4%

23:50 Japan Monetary Base, y/y August +38.0% +41.3%