The Beijing administration stated that it will maintain at least a 7% growth rate, even if private investment slows down. The government stated it would ensure excess construction materials are used in state projects, such as new rail and road schemes, to keep the economy’s momentum going. This means that Premier Li Keqiang essentially announced a growth floor of 7%.
Mining stocks are in demand as dealers believe that minerals such as iron ore will be in sought after. The London mining sector is up 2.8%.
It has been a quiet day in terms of economic data, the most notable being the number of approved mortgages, which rose in the UK to 37,300 in June. The home building companies are up on the back of this.
In the US, we are expecting the Dow to open 40 points higher at 15,585, as the reporting season continues. Defence firm Lockheed Martin reported second-quarter earnings per share (EPS) of $2.64, while analysts were expecting a level of $2.2. Ameritrade revealed a 19% rise in third-quarter revenue, citing increased trading activity as the reason behind higher earnings.