FTSE boosted by China growth hopes

Mon, 13th May 2013

The top share index in the UK was led higher during the midweek session by hopes that China could be in for a period of growth after stronger than expected figures were released. By the close of trade the FTSE 100 was higher by 0.40 per cent, reaching 6583.

Market sentient was given a lift after China revealed a trade surplus during April that smashed all expectations. Analysts have now suggested that the eastern economic superpower could be heading for a period of growth.

Despite the more positive picture which has come out of the US in recent days, particularly in the jobs sector, Nouriel Roubini, a noted economist has warned of a possible crash within the next two years.

Domestically there was more good news for the property market, despite the number of mortgage approvals falling during the past month. House prices shot up by 1.1 per cent, the largest climb in six months following rises of 0.5 and 0.4 per cent in February and March respectively. The average price of house sales also climbed, higher by 2 per cent compared to the same time last year.

In other UK news, one of the best-known hawks on the MPC, Andrew Sentance said that a further bout of quantitative easing would not he helpful.

In the FTSE 100, Morrisons was enduring a torrid time ahead of its trading update due to be reported on Thursday. Experts have predicted a 2 per cent drop in sales in the first quarter results.

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