Miners and banks help FTSE close on 6600

In mid-morning trading the FTSE 100 is probing the 6600 level, with the index up over 40 points in the wake of Chinese GDP.

China’s growth rate might still be on a steadily declining path, but investors were happy enough to see it come in line with expectations, growing by 7.5% in the second quarter. Beijing was keen to emphasise that internal consumption was picking up the slack, and helpfully retail sales rose strongly during June. Combined with a disappearance of eurozone tensions and diminishing fears about US tapering, we could be in for a week of quiet, steady gains for stock markets.

Miners are in buoyant form in London after that Chinese GDP data, which continues to put growth in the west in the shade. With the Chinese economy still expanding at a healthy pace, it looks as if demand for raw materials will not drop off in the near term. Also doing well today is the banking sector, with RBS racing 3% higher and HSBC edging up after news of a sale of its private banking arm in Germany. Earnings updates are more abundant later in the week, but the China news is sufficient to put the FTSE 100 on the front foot for now.

Meanwhile, after a positive start to earnings last week, US indices are looking towards the next batch of bank earnings, with Citigroup the next in line. Loan growth appears to be on the up, as the US housing market stages a more solid recovery, and this will help keep investors happy. Retail sales and the Empire manufacturing index are on the calendar for today, and investors will be looking to see if Wall Street is minded to challenge the highs seen back in late May. Ahead of the open, we expect the Dow Jones to start almost unchanged at 15,466.

This information has been prepared by IG, a trading name of IG Markets Limited. In addition to the disclaimer below, the material on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients. See full non-independent research disclaimer and quarterly summary.

Find articles by analysts

Een artikel zoeken

Form has failed to submit. Please contact IG directly.

  • Ik wens per e-mail informatie van IG Group bedrijven te ontvangen over handelsideeën en IG's producten en diensten.

Voor meer informatie over hoe wij uw gegevens mogelijk kunnen gebruiken, bekijkt u ons Privacy- en toegangsbeleid en onze privacy website.