15th Apr 2015 06:37
LONDON (Alliance News) - Stocks are set for a slightly lower open in London Wednesday, after Chinese GDP recorded its slowest pace of growth since 2009.
China's gross domestic product expanded 7.0% on the year in the first quarter of 2015, the National Bureau of Statistics said, meeting the expectation of economists. On an annualized quarterly basis, GDP gained 1.3%, below expectations for 1.4% and down from 1.5% in the fourth quarter.
"In the wake of Monday's [Chinese trade] data, these numbers were every bit as disappointing as we'd expected them to be, and that in itself is likely to result in further easing measures from Chinese authorities in the coming weeks and months, and it is this prospect which has, in the old bad news is good news kind of way that we've become used to, driven Hong Kong and Shanghai markets to multi year highs, over the past few days and weeks," says Michael Hewson, chief market analyst at CMC Markets.
In Asia, the Shanghai Composite is trading up 0.4%. The Hang Seng is up 0.4% as well, and the Japanese Nikkei closed down 0.2%.
Japan's industrial production declined by less than estimated in February, final data from the Ministry of Economy, Trade and Industry showed. Industrial output dropped 3.1% month-on-month in February instead of a 3.4% fall estimated initially. On a yearly basis, production was down 2%.
IG says futures indicate the FTSE 100 to open 6.3 points lower at 7,069.0. The index closed up 0.2% at 7,075.26 on Tuesday, as UK consumer prices held just above the deflation line but remained at zero for the second straight month in March.
On Wall Street on Tuesday, the DJIA closed up 0.3%, the S&P 500 ended up 0.2%, but the Nasdaq Composite fell 0.2%.
Germany's consumer prices increased for the second straight month in March as initially estimated, final data from the statistical office Destatis showed Wednesday. Consumer prices rose 0.3% in March from last year, following a 0.1% increase in February. The annual increase matched the preliminary estimate published on March 30. In January, consumer prices slid 0.4%, which was the first fall since September 2009.
Burberry Group reported growth in revenue for the second half if its financial year and said it is facing "strong demand" for its core heritage trench coats and scarves.
The fashion retailer said underlying revenue for the six months to March 31 was up 9% on the same period last year at GBP1.42 billion from GBP1.30 billion. Underlying retail revenue was up 13% at GBP1.06 billion from GBP928 million on the previous year. It said there was double-digit sales growth in the Americas and Europe, Middle East, India and Africa, with strong performance in the UK, France and Italy from both domestic and travelling luxury customers.
Bunzl said revenue rose 6% in the first quarter of 2015 from a year earlier, buoyed mainly by acquisitions as it also said it has bought a personal protection equipment company in Turkey. The acquisitive distribution and outsourcing company said underlying revenue was up 2% in the three months to end-March, with the remainder of the revenue growth coming from acquisitions.
Old Mutual named Bruce Hemphill as its new chief executive, replacing Julian Roberts. Hemphill moves to the insurer from Standard Bank in the fourth quarter.
German telecom firm Drillisch announced that it has signed sale and purchase agreement with Dixons Carphone for the acquisition of The Phone House Deutschland GmbH. The transaction is anticipated to take place by the end of May at the latest.
Elsewhere in the corporate calendar, there was full-year results from JD Sports Fashion, interim management statements from oil services company Hunting and from LED technology supplier Dialight, and a trading update from Jupiter Fund Management. There is also first quarter production results from precious metals miner Fresnillo.
In the economic calendar, there are French consumer prices at 0745 BST, before the European Central Bank's interest rate decision at 1245 BST and subsequent press conference at 1330 BST. Later in the day there are US industrial production data at 1415 BST and EIA crude oil stocks at 1530 BST.
By Neil Thakrar; [email protected]; @NeilThakrar1
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