LONDON MARKET EARLY CALL: Stocks up on China's "notable improvements"

(Alliance News) - Stocks in London are set to open in the green on Friday, despite news of ...

Alliance News 17 January, 2025 | 6:58AM
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(Alliance News) - Stocks in London are set to open in the green on Friday, despite news of historically slow economic growth last year in China.

Beijing's National Bureau of Statistics said the economy grew 5% last year, slightly above the 4.9% forecast in an AFP survey of analysts but lower than the 5.2% recorded in 2023 and one of China's slowest rates of growth in decades. Retail sales rose 3.5% – a major slump from the 7.2% growth seen in 2023 – though industrial output increased 5.8%, from 4.6% the previous year.

However, in the fourth quarter GDP grew by 5.4%, outperforming the 5% forecast in a Bloomberg survey and much better than growth for the same period in 2023.

"China's December economic data has significantly exceeded expectations," commented Pepperstone's Dilin Wu, "with notable improvements in both consumer activity and industrial performance. This bodes well for the government's push to stimulate domestic demand and support a more balanced recovery...These encouraging figures have helped bolster confidence in China's economic outlook, with both CN50 and the Hang Seng Index seeing buying interest.

"However, uncertainties remain regarding China's future economic trajectory."

IG says futures indicate the FTSE 100 to open up 39.9 points, 0.5%, at 8,431.8 on Friday. The index of London large-caps closed 1.1% higher on Thursday.

Sterling was quoted at USD1.2209 early Friday, lower than USD1.2241 at the London equities close on Thursday.

The euro traded at USD1.0287 early Friday, lower than USD1.0305 late Thursday. Against the yen, the dollar was quoted higher at JPY155.71 versus JPY155.19.

In the US on Thursday, Wall Street ended lower, with the Dow Jones Industrial Average down 0.2%, the S&P 500 down 0.2% and the Nasdaq Composite down 0.9%.

In Asia on Friday, the Nikkei 225 index in Tokyo was down 0.3%. In China, the Shanghai Composite was up 0.2%, while the Hang Seng index in Hong Kong was up 0.3%. The S&P/ASX 200 in Sydney closed down 0.2%.

Gold was quoted at USD2,712.12 an ounce early Friday, lower than USD2,719.78 on Thursday.

Brent oil was trading at USD81.58 a barrel early Friday, higher than USD79.90 late Thursday.

In Friday's corporate calendar, there are trading updates from DFS Furniture, Ninety One and Petershill Partners.

In the economic calendar on Friday, look out for eurozone consumer inflation, UK retail sales, and US industrial production.

By Emma Curzon, Alliance News reporter

Comments and questions to newsroom@alliancenews.com

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