LONDON, Dec 3 (Reuters) - European shares inched higher
early on Monday, led by commodity companies , on
the back of improving manufacturing data from China.
By 0801 GMT, the FTSEurofirst 300 climbed 2.51
points, or 0.2 percent, to 1,121.87. Miners were among those
boosted by a survey that showed China's giant manufacturing
sector had moved into expansion territory for the first time
since October 2011.
"We are in an environment where the big picture risks are
still there; the U.S. fiscal cliff, the euro zone and China -
on two of those (China and the euro zone) arguably things have
been improving," Philip Poole, global head of macro investment
strategy at HSBC Global Asset Management, said.
Poole said the U.S. "fiscal cliff" of some $600 billion in
automatic tax hikes and spending cuts remains a big stumbling
block for investors, but he said equities remain good value
relative to core government debt and now is a good to be buying
"What is going to drag fresh money back into this market? It
is the data more than anything ... If we see some stabilisation
in European data then that could see some of the money come in,"
Investors were bracing for euro zone factory surveys, due
later in the day. The region is on course for its worst quarter
since early 2009.