China growth pushes FTSE to one-month high

Overnight the focus has shifted from the largest economy in the world to the second largest: just as the US ended its political deadlock, China posted a great leap forward in growth. 

FTSE up 30 points

The FTSE 100 is at a one-month high, up 30 points, after China reported solid growth figures for the third-quarter, an improvement on the previous quarter. At the start of the summer the Chinese interbank borrowing rate spiked which fuelled fears of a credit crunch, but now traders are reassured that the Asian giant is stabilising. 

Tapering postponed to 2014

US equities are a touch higher as traders have slipped back into the old habit of 'bad news is good news'. It is a step in the right direction that the partial shutdown is over, despite the damage it incurred meaning tapering will be postponed until the new year. Traders are not necessarily interested in the long-term health of the US economy, however, but instead what policymakers will do to keep the markets on side.

Google has passed the $1000 mark for the first time; the stock is up 12% on the day after beating expectations last night. 

Copper in demand

Gold has given up some of yesterday’s gains as profit-taking has set in, while copper is in demand after the strong growth figures from China overnight. 

US dollar soft

The US dollar is soft as the likelihood of the US Federal Reserve trimming its bond-buying programme this side of Christmas has fallen, due to the budget deadlock. The Australian dollar is making up for lost ground as China’s fortune turns.

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