After last week’s Fed rate-hike delaying gains, the European indices kicked off this morning positively, boosted by a wave of data from China.
Spreadex Analyst, Connor Campbell explained “Overnight there was a quartet of important Chinese figures, led by a better than expected 6.9% GDP reading.”
“That was joined by a far stronger than forecast industrial production number, an 11% increase in retail sales year-on-year and solid fixed asset investment figure.”
“Understandably the FTSE’s commodity stocks were pretty pleased with the outcome of all this, allowing the UK index itself to surge 50 points higher to cross 7400 once again.”
Over in the Eurozone, investor attention turns to the Euro this week in light of the European Central Bank’s rate decision on Thursday.
ADS Securities Analyst, Konstantinos Anthis suggested “The central bank is in no position to hike interest rates at this point so the focus will be on Mario Draghi’s comments about a potential change in monetary policy”
“The Euro has enjoyed broad gains against the dollar since Friday after fresh US data missed expectations.” He added. “If today’s Eurozone inflation figures print in a positive fashion, the euro may hold above the 1.1450 area followed by a fresh attempt to break 1.1500.”
US equity markets closed at record highs on Friday as the Q2 earnings season kicked off. Accendo Markets Analyst, Mike van Dulken noted “Despite a mixed performance from banking giants JPMorgan, Citi and Wells Fargo (earnings beat, trading revenues miss), both the Dow Jones and S&P500 rallied as investors envisage a strong quarter for US companies.”
“The Nasdaq was the only major bourse not to notch a record closing high, however saw its best weekly performance since November.”
Investors will be monitoring results tomorrow from Bank of America, Goldman Sachs and Morgan Stanley, and Alcoa on Thursday.