Photo/Illutration People walk past a bank's electronic board showing the Hong Kong share index at Hong Kong Stock Exchange on Nov. 2. (AP Photo)

Global shares rose Monday on signs of recovery in manufacturing in China and Europe, though new lockdown measures in major economies are clouding the outlook again.

U.S. shares were set to drift higher with Dow futures up 1.6% and S&P 500 futures 1.3% higher. France's CAC 40 gained 1.9% to 4,679, while Germany's DAX was up 1.8% at 11,773 after a survey showed industrial output was at a strong level in October in the eurozone, just as new limits are being reimposed on public life. Britain's FTSE 100 gained 1.1% to 5,638.

The European report on industrial output echoed a rise in the Caixin manufacturing PMI, a major indicator for China’s manufacturing sector, which showed that domestic demand is holding up. Data for Japan and India also were encouraging.

Japan's benchmark Nikkei 225 surged 1.4% to 23,295.48, while South Korea's Kospi gained 1.5% to 2,300.16. Australia's S&P/ASX 200 added 0.4% to 5,951.30. Hong Kong's Hang Seng jumped 1.5% to 24,460.01, while the Shanghai Composite inched up less than 0.1%, to 3,225.12. India's Sensex advanced 0.8%.

The gains provide some respite for markets, with the S&P 500 posting its first back-to-back monthly loss since the coronavirus pandemic first gripped the economy in March.

Despite the improvement in manufacturing, the resurgence of outbreaks of COVID-19 has investors worried, on top of uncertainty over the U.S. presidential election.

The U.S. government’s top infectious diseases expert has cautioned that the U.S. will have to deal with “a whole lot of hurt” in the weeks ahead due to surging coronavirus cases. Dr. Anthony Fauci said in a Washington Post interview that the U.S. “could not possibly be positioned more poorly” to stem rising cases as more people gather indoors during the colder fall and winter months.

In the election, one part of the focus for investors is on U.S.-China relations, though it's unclear what change either outcome might bring on that issue. Although Democratic candidate Joseph Biden might go easier on tariffs, he is unlikely to soften U.S. policy on other issues such as human rights, Carnell said in a report.

In energy trading on Monday, benchmark U.S. crude slipped 89 cents to $34.90 a barrel in electronic trading on the New York Mercantile Exchange. It lost 38 cents to $35.79 per barrel on Friday. Brent crude, the international standard, fell 72 cents to $37.22 a barrel.

The dollar inched up to 104.68 Japanese yen from 104.66 yen. The euro cost $1.1646, down slightly from $1.1648.

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