London market gets boost from China growth figures
July 17 2017 11:25 PM
Traders working on the floor of ETX Capital in London (file). The commodities-heavy FTSE 100 index yesterday rebounded 0.35% to close at 7,404.13.

London’s stock market rebounded yesterday, with miners buoyed by solid Chinese economic growth figures, while eurozone indices were steady to slightly lower.
Asia equities mostly increased in value following another record close on Wall Street before the weekend.
Frankfurt ended the day lower as investors appeared to be avoiding risk before a European Central Bank (ECB) meeting on Thursday, while Paris closed flat.
London’s commodities-heavy FTSE 100 index however rebounded 0.35% to close at 7,404.13 as strong Chinese growth data bolstered demand hopes from the world’s leading consumer of many raw materials.
Elsewhere in Europe, Frankfurt’s DAX 30 was fell 0.35% at 12,587.16, while Paris’ CAC 40 closed flat at 5,230.17.
Shares in mining giants Anglo American and Glencore closed more than 1% higher, while Fresnillo jumped 2% in value.
“The FTSE remained far and away Monday’s best performer...and is just about keeping its head above 7,400, thanks to the dual boosts of some China-inspired gains in the commodity sector and a Brexit-dragged showing from sterling, which is down between 0.1-0.2% against the dollar,” said Spreadex analyst Connor Campbell.
The world’s No 2 economy expanded an annualised 6.9% in the second quarter, beating forecasts in an AFP survey, and indicating it is stabilising after a long slowdown.
The reading was the same as the previous three months.
XTB analyst David Cheetham however sounded a note of caution on China.
“Whilst there remains a high degree of scepticism over the accuracy of data points from the Far East, the initial reaction has been positive and attracted buyers into London-listed stocks with exposure to China,” he said.
China is trying to shift from an economy reliant on state investment to one powered by consumer spending.
Its leaders are also attempting to clamp down on bad debt, which analysts fear could spark a financial crisis if not resolved.
US markets have begun the week little changed following Friday’s record high on the Dow and the S&P 500.
In London, a star performer yesterday was British independent television channel ITV whose shares closed up 1.31% to 177.30 pence.
ITV said EasyJet boss Carolyn McCall would become its chief executive from next year.
EasyJet stock gained 1.42% to close at 1,431 pence.
“McCall, who has built and led the management team that has transformed EasyJet’s performance in the past seven years, sees amazing opportunities for ITV and will take up her role there in early January,” noted Russ Mould, investment director at stockbroker AJ Bell.
Back in Asia, Shanghai equities pared steep early losses thanks to the stronger than expected growth figures.
But Shanghai stocks still fell 1.4% after a top-level government policy-setting conference at the weekend promised an extended crackdown on risks in the financial system.

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