Europe And Asia Are Up On First Trading Day Of The Week

Asian markets closed higher on the first trading day of the week. Stock market added further gains despite a weaker GDP number release in China. The economic data released in China showed that the country’s GDP fell to 7.5% for the second quarter which was weaker than the previous reading of 7.7%. However, the final reading for the second quarter was in line with expectation’s level and the also in line with the government target level of 7.5%.

Traders around the world are afraid about the continues weakness of the GDP number given the government is refraining to commit to any new additional quantitative easing, which could boost the country’s economic growth. Investors were anxious on Chinese finance ministers’ comment last week when he said that the country may fall short of expectation on its GDP target. However, he is confident that China will not face hard landing and slow growth for the country’s GDP is among one of their policies because they are trying to step away from their dependence on exports.

The Shanghai Index was the best performing index during the session which closed with a gain of 0.96%. The index is up nearly 2.58% for this week. The Hang Seng index was the second best performer and closed with a gain of 0.12%. The Nikkei index was closed for a national holiday.
The banking sector was among one of the best performing sector during the session. Shares of China Citic Bank Corp. soared nearly by 4.3% and Bank of Communications Co. also gained nearly 1.79%. The retail sector was also among investor’s favorite sector on the back of a strong economic retail sales number. China Resources Enterprise Ltd and Tencent both increased nearly by 3.3% and 3.7% respectively.

European stock markets are also trading sharply higher during the early hours of trading. These gains are despite a rating cut by Fitch for the second biggest economy in the euro zone, France. However, the housing recovery in the UK is still on track, as the home sellers have increased their asking prices for their houses. The house sellers have been increasing these prices for a consecutive seventh month, according to Right move.

The CAC 40 Index is the best performing index during the session which is trading up with a gain of 0.62%. The index is up nearly 3.36% for this week. The FTSE 100 index is the second best performer and is also trading up with a gain of 0.52%. The IBEX 35 and the FTSE MIB are trading mix with a loss of -0.34%, and gain of 0.45% respectively.

DISCLOSURE & DISCLAIMER: The above is for informational purposes only and NOT to be construed as specific trading advice. responsibility for trade decisions is solely with the reader.

by Naeem Aslam