European markets rally on China growth data

GMT 12:58 2014 Tuesday ,21 October

Arab Today, arab today European markets rally on China growth data

European stock markets
London - AFP

European stock markets rallied on Tuesday after surprisingly good Chinese economic growth data boosted optimism over the global economic outlook, dealers said.
Equities swung higher following the upbeat news, in stark contrast to the wild swings of last week which were fuelled by fears over the state of the world economy.
In midday deals, London's benchmark FTSE 100 index of top companies rose 0.75 percent to 6,314.78 points compared with Monday's closing level.
Frankfurt's DAX 30 index leapt 1.48 percent to 8,847.20 points, while the CAC 40 in Paris jumped 1.68 percent to stand at 4,058.14.
Shares in French oil and gas giant Total meanwhile rebounded by more than two percent, having dived by two percent in earlier deals following news of the accidental death of its chief executive Christophe de Margerie.
Total shares later stood 1.90 percent higher at 43.76 euros.
"Helping drive indices higher ... is the better than expected growth figures from China, which despite experiencing the slowest rate of growth in six years in the third quarter, exceeded market expectations," said analyst Craig Erlam at trading firm Alpari in London.
"As always, there’s a couple of ways to look at this data but clearly investors are focusing more on the positives once again."
- Rumours of ECB action -
In Paris, IG France analyst Alexandre Baradez said: "The market has accelerated on reports that the European Central Bank could buy bonds issued by companies, but there has been no official confirmation of this."
He said: "Currently, central banks hold sway on the markets and any sign concerning the purchase of assets is likely to move the indices."
Asian markets traded mixed on Tuesday, however, as data showing China's economy growing at its slowest pace in five years offset another positive lead from Wall Street.
The Chinese economy grew by 7.3 percent year-on-year in July-September, official data showed Tuesday.
That was lower than the 7.5 percent expansion in the previous three months and the slowest since the 6.6 percent in the first quarter of 2009.
However, the reading exceeded the median forecast of 7.2 percent in an AFP survey of 17 economists.
"The general consensus to the GDP data is that it will encourage the Chinese government to introduce more stimulus measures to help rebalance the Chinese economy," added analyst Jameel Ahmad at traders FXTM.
"Investors are looking at this positively," he added.
Europe's mining and resources sector forged higher on the back of the data, because Asian powerhouse China is a key consumer of metals.
The biggest gainer in Paris was global steelmaking giant ArcelorMittal, whose share price rose 4.04 percent to 9.985 euros.
In Frankfurt, Thyssenkrupp gained 3.52 percent to 18.375 euros.
On the downside in London, shares in Reckitt Benckiser sank 1.74 percent to 5,025.98 pence after the British household goods firm warned annual sales would be towards the lower end of forecasts, after a weaker-than-expected third-quarter.
In foreign exchange trading, the euro firmed to $1.2808, compared with $1.2800 late in New York on Monday.
The European single currency rose to 79.24 British pence from 79.17 pence. The pound was worth $1.6165, up from $1.6163 on Monday.
On the London Bullion Market, the price of gold dipped to $1,252.96 an ounce from $1,253.91.

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