Europe welcomes China’s strong close

In mid-morning trading the FTSE 100 is firmly in the black after a strong finish in the Far East fuels buying. 

Shanghai, China
Source: Bloomberg

Stock markets in Europe are higher after China revealed a record trade balance in August, and the good news was that even though the level of imports declined, it still managed to beat estimates. Chinese economic data has been so disappointing lately, dealers will jump on any remotely positive news to justify their bargain hunting. Today’s rally will be a real test, as any big upward moves we have witnessed have been short-lived, and the underlying confidence just wasn’t there.

Traders have a spring in their step today because it’s the first trading session in nearly one week that all the major markets are open after being closed for holidays in China and the US.  The commodity-related  companies are enjoying their time in the sun, but the question is how long it will last? Some buyers have come back into the arena on the back of the better-than-anticipated Chinese imports numbers, but the big picture is still poor for the sector.

We are expecting the Dow Jones to open 270 points higher from Friday’s close at 16,370. The US market is following Asia’s lead higher, and a quiet day of economic data is insured as there are no roadblocks to the rally. China is still the dominant force in the financial markets at the moment, and the rest of the world buys and sells in reaction to its move. 

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.

CFD’s zijn complexe instrumenten en brengen vanwege het hefboomeffect een hoog risico mee van snel oplopende verliezen. 79% van de retailbeleggers lijdt verlies op de handel in CFD’s met deze aanbieder.
Het is belangrijk dat u goed begrijpt hoe CFD's werken en dat u nagaat of u zich het hoge risico op verlies kunt permitteren.
CFD’s zijn complexe instrumenten en brengen vanwege het hefboomeffect een hoog risico mee van snel oplopende verliezen.