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.

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

This information has been prepared by IG, a trading name of IG Markets Limited and IG Markets South Africa 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. International accounts are offered by IG Markets Limited in the UK (FCA Number 195355), a juristic representative of IG Markets South Africa Limited (FSP No 41393). South African residents are required to obtain the necessary tax clearance certificates in line with their foreign investment allowance and may not use credit or debit cards to fund their international account.

CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 79% of retail investor accounts lose money when trading CFDs with this provider.
You should consider whether you understand how CFDs work, and whether you can afford to take the high risk of losing your money.
CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage.