Unlike the slightly disappointing Markit US manufacturing survey, the ISM report has come in better than expected.

The ISM manufacturing activity index reached 57.7 in February, up from 56 in January and better than the 56.2 analysts had been forecasting. This is the highest level since August 2014, and adds to the growing expectation that a US interest rate rise could be imminent.

As investors react favourably to Donald Trump’s address to Congress, US markets have followed the lead from their counterparts elsewhere and opened in a positive mood.

The Dow Jones Industrial Average has jumped above 21,000 for the first time, adding 201 points or 0.95% to 21,013 while the S&P 500 rose 0.79% and the Nasdaq Composite 0.85% at the open. (This is the quickest time the Dow has taken to climbe 1000 points, having gone through 20,000 only in January)

The prospect of a US interest rise this month seems to have increased following comments from members of the Federal Reserve, which has given a lift to the banking sector.

The market moves come ahead of the two manufacturing surveys due shortly, from Markit and then ISM.

Over in Greece a 24-hour strike by transport workers has unleashed traffic chaos in Athens and put further pressure on the leftist-led government as creditors step up demands for a new package of cuts worth 2% of GDP. Helena Smith reports:

As spring approaches, public sector workers are stepping up pressure on prime minister Alexis Tsipras’ government with increased industrial action. After seeing the Acropolis closed by protesting guards last week, Greeks woke up to a 24-hour hour strike by metro, tram and urban rail employees across the capital today.

Workers, who will stage a similar walkout on Friday, are up in arms over legislation allowing the cash-starved Athens transport organisation (OASA) to make commercial use of stations. Arguing that the law is the first step to privatization, they claim it will ultimately undermine the public character of the transit network and hurt consumers.

Protests against further pension cuts have also been announced by doctors working in state-run hospitals with a nationwide 24-hour walk-out planned tomorrow. In a proclamation released at lunchtime, the Panhellenic Doctors Association called on medics in the public and private sector to participate in the mass display of opposition against reduced pensions and increased contributions. The decision to unify pension funds would, they said, only exacerbate the paring back of desperately needed resources for the health sector. At 11%t of GDP, the IMF argues that Greece spends more on pensions than almost any other state.

The protests come as Greek officials spoke of a wealth of differences with creditors who this week resumed stalled bailout negotiations in Athens. Acknowledging that headway had yet to be made on the counter measures the government hopes to install to offset the impact of further tax and pension reforms, the Greek finance minister Euclid Tsakalotos told parliament on Tuesday that nothing was agreed until everything was agreed and that austerity was far from over.

The FTSE 100 has hit a record intra-day high, up 1.24% at 7354.24.

The previous intra-day record was 7354.14 on 16 January this year, and the previous record close was 7337 on 13 January.

Global markets generally have been boosted by the calmer tone of Donald Trump’s address to Congress, even though there was little new detail on his plans for infrastructure spending and tax reforms.

But the FTSE 100 in particular has been helped by weakness in sterling, which lifts the profits of its overseas earners.

The pound has been hit by weaker than expected UK manufacturing data earlier, which makes any interest rate rise from the Bank of England unlikely in the near future, as well as an increase in the dollar as the chances of the Federal Reserve increasing US borrowing costs grow stronger.

German inflation rose further in February, up 2.2% on the year after a 1.9% rise in January.

This is the highest annual inflation rate since August 2012 and puts the country ahead of the European Central Bank’s target of just under 2%. Higher energy and food costs were the main reason for the rises.

But with elections due, the news is likely to see renewed calls in the country for the ECB to call an end to its loose monetary policy.

Meanwhile sterling has fallen to a near-six week low against the dollar, falling as low as $1.2323 and boosting the FTSE 100’s overseas earners.

The currency has been reacting to the weaker than expected UK manufacturing figures - pushing the chances of a rate rise even further into the distance - as well as the strength of the dollar as the Fed does look likely to increase borrowing costs, perhaps as soon as this month.

There are also the concerns about the prospect of a Scottish referendum and the continuing uncertainty over Brexit.

After an early rise against the euro, sterling is flat against the single currency at €1.1701.

Markets continue to be boosted by the calmer tone of Donald Trump’s address to Congress, along with a - generally - positive picture of the manufacturing sector in February.

The FTSE 100 is up 1% at 7336, heading close towards its intra-day high of 7354 achieved on 16 January.

Germany’s Dax is up 1.42% and France’s Cac 1.45%, despite the continuing concerns over the French presidential election.

Meanwhile US futures are suggesting an 88 point opening for the Dow Jones Industrial Average, which dipped at the close on Tuesday after 12 days of rises.

Commodity shares were lifted by Trump’s repeating his plans for $1bn of infrastructure spending, with the Stoxx 600 basic resources index up 1.9%.

Building materials group CRH is the biggest riser in the FTSE 100 after a 10% rise in earnings. As the largest building materials business in North America, it is well placed to benefit from Trump’s spending proposals, although it said this was more likely to have an impact in the medium rather than short term.

More on the UK housing market following the earlier Nationwide survey.

Bank of England mortgage approval figures show the upward trend since the Brexit vote last summer continued in January.

The number of mortgages approved for new house purchase jumped from 67,898 in December to 69,928, higher than the consensus among City economist for a gentler rise to 68,650.

This was the fifth monthly rise in a row and the highest since last March.

Scott Bowman, UK economist at Capital Economics, said the bounce in mortgage lending would have strengthened the argument for rate rises later in the year if it were not for a fall in annual growth in lending to corporates from 3.2% in December to 2.7% in January.

“This contributed to a drop in annual growth in the monetary policy committee’s preferred measure of bank lending - M4 lending excluding intermediate OFCs - from 6.2% to 5.3%. Nonetheless, we think that supportive monetary policy will ensure that the slowdown in bank lending this year isn’t too sharp.”

Jeremy Duncombe, director at Legal & General Mortgage Club, said the mortgage aprovals figures highlighted the resilience of the UK housing market.

“Despite an uncertain political outlook, it is great to see the industry adopting a ‘keep calm and carry on’ approach as the mortgage industry continues to serve the needs of remortgagers and buyers alike,” he said.

But Dennis de Jong, managing director at UFX.com warned that the strength was dependent on Bank of England support following the cut in interest rates last August.

“Mark Carney and his Bank of England colleagues helped to breathe some life into it by cutting interest rates further and mortgage approvals have stood up very well in January.

“However, this may not continue for long with high levels of uncertainty around Britain’s exit from the EU far from the best breeding ground for house buying. There has been some slightly conflicting data in the past fortnight regarding the strength of UK housing, but the general consensus is that things are likely to worsen throughout the year,” he said.

Meanwhile, ITV has reported its worst year for TV advertising since the 2009 recession as Brexit fears caused jittery companies to pull budgets last year.

ITV said that TV ad revenues fell 3% last year to £1.67bn and would fall 6% in the first four months this year as retailers and food companies focus on price cuts over ad spend to win over consumers.

However, the UK’s biggest free-to-air broadcaster was able to pay out a special dividend to shareholders of more than £200m thanks to the performance of ITV Studios.

The TV production business - which makes and sells shows including Victoria, Mr Selfridge, Come Dine with Me and Coronation Street - helped ITV more than offset the ad decline with double-digit growth in revenues and profits last year.

ITV saw pre-tax profits fall 14% to £553m, due to £164m in mostly non-cash charges, while total revenues grew 4% to £3.5bn. ITV, which had warned analysts of the Brexit-related TV ad decline, beat city consensus figures by 3%.

Britain’s factory activity grew more slowly than expected in February, but is still continuing to show the strong momentum seen since the Brexit vote.

The Markit/CIPS manufacturing purchasing managers index slipped from 55.7 in January to 54.6, below the expected figure of 55.6. But it remains close to a two and a half year high. There was a slight easing in inflationary pressures which had been rising in the wake of sterling’s slump following the referendum outcome last June.

Eurozone factories grew at their fastest rate for 70 months in February, as the weak euro helped boost demand for exports.

The IHS Markit purchasing managers index rose from 55.2 in January to 55.4, the highest level since April 2011. It was revised down slightly from an initial estimate of 55.5. Markit said:

Companies indicated that domestic demand remained solid in a number of markets, while the weak euro contributed to the fastest growth of new export business for almost six years.

Chris Williamson, chief business economist at IHS Markit said:

Euro area manufacturers are reporting the strongest production and order book growth for almost six years, in what’s looking like an increasingly robust upturn.

Companies clearly expect the good times to persist. This year has seen firms more optimistic about the future than at any time since the region’s debt crisis. Companies are reporting stronger demand in both home and export markets, with the weakened euro providing an accompanying tailwind to help drive sales.

Given the current buoyant demand environment, manufacturers are eschewing political uncertainty and quietly getting on with growing their businesses. The rate of job creation seen so far this year in the manufacturing sector has consequently been among the best seen in the history of the euro.

Greece remains the outlier, stuck firmly in contraction territory while all other countries are expanding with the Netherlands, Austria and Germany enjoying the strongest growth.

On the price front, not only are higher commodity prices and the weak euro pushing up firms’ costs, but there’s also growing evidence of a sellers’ market developing for many goods as demand exceeds supply, which suggests core inflationary pressures may be starting to rise.

But over in the powerhouse of the eurozone economy, things look pretty bright for manufacturers.

Factory activity expanded at the strongest rate in nearly six years in February, with Markit’s purchasing managers index up from 56.4 in January to 56.8. IHS Markit economist Trevor Balchin said:

The survey results suggest that manufacturing [which accounts for about a fifth of the economy] will contribute to a strengthening in overall economic growth in the first quarter.

He said GDP growth in the quarter was likely to rise to at least 0.6% after 0.4% growth in the final three months of 2016. Last year Germany was the best performing economy in the G7, beating the UK into second place.

To continue the mixed picture for European manufacturing, French factory activity more slowly in February.

The IHS Markit purchasing managers index fell from 53.6 in January to 52.2 last month, down from a preliminary reading of 52.3. Companies raised prices at the fastest pace since July 2011 as they passed on rising commodity costs on to customers. Markit economist Alex Gill said:

New business from both domestic and foreign clients..increased. However, rates of growth eased for a second successive month, suggesting a downward trend in underlying demand conditions.

Italy’s manufacturing sector grew at its fastest pace since December 2015 in February, according to the latest Markit survey.

The purchasing managers index rose from 53 in January to 55 last month, and well above the 53.5 figure expected by economists.

Spain’s manufacturing sector grew by less than expected in February and less than the previous month:

But the purchasing managers index was still well above the 50 level which separates expansion from contraction.

Manufacturers said they increased output prices to cope with the rising cost of materials such as steel.

As expected, investors in Europe have reacted calmly to Donald Trump’s address to Congress, with markets on the front foot ahead of a batch of economic data.

The FTSE 100 is up 43 points or 0.6% while Germany’s Dax has opened up 0.8%, France’s Cac has climbed 0.9% and Italy’s FTSE MIB and Spain’s Ibex are both around 0.8% higher.

In the UK, there was little sign of a Brexit-related blow to the housing market in February, with prices rising more than expected according to Nationwide.

The average price of a home rose 0.6% to £205,846 last month, following a 0.2% increase in January.

It comfortably beat economists’ expectations of a 0.2% rise and took the annual rate of house price growth to 4.5% from 4.3% a month earlier.

Robert Gardner, Nationwide’s chief economist, said the backdrop for the housing market was mixed. The economy had performed relatively strongly on the one hand, with growth of 0.7% in the fourth quarter, but on the other hand UK consumers might be less willing to spend money in the coming months as inflation picks up.

He concludes: “In our view a small rise in house prices of around 2% is more likely than a decline over the course of 2017, since low borrowing costs and the dearth of homes on the market will continue to support prices.”

Good morning, and welcome to our rolling coverage of the world economy, the financial markets, the eurozone and business.

President Trump’s long awaited address to Congress ended up being more, well, presidential than usual. There was nothing there to scare the horses, although there was not much in the way of new detail in terms of his tax reforms and infrastructure spending plans. Michael Hewson, chief market analyst at CMC Markets, said:

Having built up expectations to elevated levels over the past few weeks the President set himself an exceedingly high bar to deliver, which always suggested that it could struggle to live up to expectations, in terms of additional detail to what we already know. Ultimately that is the key benchmark here, yes the speech was optimistic and Mr Trump did come across as more Presidential, however the speech merely confirmed a lot of the details that had been heavily trailed before.

As to the key question as to whether it would come across as more or less bullish in terms of spending and rates there was still a significant lack of detail. This may be more to do with tempering expectations until he puts his final plans through Congress ahead of any debt ceiling negotiations.

The speech merely confirmed the President’s aspirations with respect to infrastructure spending, up to $1trn, while there was little in the way of content about tax policy, though we had been forewarned about that given his comments about prioritising revamping Obamacare. There were no details about a border adjustment tax, though he did reiterate his commitment to free and fair trade, as well as building the border wall with Mexico.

Our full report on Trump’s address is here:

All this served to calm the markets, although ahead of the speech the Dow Jones Industrial Average ended lower after twelve day’s of record highs, albeit down just 0.12%. That meant it has fallen short of beating the best consecutive run of closing highs - 13 days in January 1987.

But in the aftermath of Trump’s speech Asian markets moved higher, with the Nikkei up 1.4% to its best close since February 15. European markets are also expected to open ahead.

US interest rates were also in focus after more members of the Federal Reserve suggested a rise could be imminent, perhaps even at this month’s meeting. New York Fed president Bill Dudley, thought of as a dove on policy, seemed to be veering towards a rise, saying it had become “a lot more compelling” after recent data.

It being the first of the month, there is a host of new data due, including manufacturing figures for February from the eurozone, UK and US as well as German jobs and inflation data.