China data spurs on market

China data spurs on market

By Tracey Warren (Stockbroking Sales Executive, CMC Markets Stockbroking)

Encouraging data out of China spurred markets overnight with global stock markets edging higher. Persistent uncertainty over the potential trigger for US Fed tapering capped gains. The Dow Jones Industrial Average was up 5.33 points at 16,025.53 whilst the S&P 500 was up 3.28 points at 1,808.37.

Chinese CPI rose 3.0% year-on-year in November, down from 3.2% in October, quelling policy tightening fears for the world’s second-largest economy. Further adding to stabilisation evidence, exports also breezed past forecasts for November.

There was no love felt in the local session yesterday with the ASX 200 falling 41.6 points to 5,144.4 despite the positive China data. QBE was the notable drag tumbling more than 22 percent following a profit warning.

After dipping to a three-month low last week, the Australian dollar is steady at 0.9100 against the Greenback this morning. The strong China trade data gave the Euro a boost, which is at a five-year high against the Yen and a six-week high against the Greenback.

Attention also remains on Thailand as the Prime Minister has called a snap election to defuse mounting tensions in the emerging market.

The strong Chinese data also helped lift Copper prices overnight with Gold also climbing to US$1,240 an ounce. Iron Ore prices seemingly reacted positively to the strong US jobs report last week climbing US 20c to US$139.40 a tonne.

Today will see NAB business confidence figures released in the local session along with Chinese Industrial Production figures this afternoon. Overnight French and Italian production figures are due along with Trade Balance and Manufacturing data for the UK. ECB president Draghi will also be speaking.

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