13th Apr 2016 06:01
LONDON (Alliance News) - Stocks in the UK are expected to open higher Wednesday after Chinese export data for March increased by more than expected.
Exports grew 11.5% year-over-year in March in dollar terms, data from the General Administration of Customs showed, exceeding economists' expectations for a 10.0% rise. It was also much improved from the 25.4% decline seen in February.
"The surge in exports adds to the improving outlook for China indicated by moderating producer price inflation and a rebound in business confidence data. The pickup in exports was likely supported by the devaluation of the yuan at the start of the year which made Chinese goods relatively cheaper than domestic options abroad," says Jasper Lawler, market analyst at CMC Markets.
At the same time, imports plunged 13.8% in dollar terms in March from a year ago, faster than the 10.1% decrease expected by economists. The visible trade surplus of the country came in at USD29.86 billion in March, which was lower than the expected surplus of USD34.95 billion.
In Asian equities, the Shanghai Composite is up 2.1% and the Hang Seng in Hong Kong is up 2.5%. The Japanese Nikkei 225 index is up 2.8%.
IG says futures indicate the FTSE 100 to open 33.01 points higher at 6,275.4. The index ended up up 0.7%, or 42.27 points, at 6,242.39, after Interfax reported that Russia and Saudi Arabia reached a consensus on freezing oil output.
On Wall Street Tuesday, the Dow 30 ended up 0.9%, the S&P 500 up 1.0% and the Nasdaq Composite up 0.8%.
The highlight in the UK corporate calendar is full-year results from Tesco. The grocer is expected to report a return to profit after a devastating financial year 2015.
The UK's largest retailer has spent the last year trying to rebuild the business after it suffered a GBP6.38 billion pretax loss in financial 2015, when it booked a staggering GBP7.0 billion of impairments, writedowns and restructuring charges. It made a GBP2.26 billion pretax profit in financial 2014.
There are also half-year results from books and stationery retailer WH Smith. Jupiter Fund Management issues a trading statement as does car parts and bicycle retailer Halfords Group, housebuilder and regeneration company Countryside Properties, residential property developer Telford Homes and recruiter Robert Walters. FTSE 100 gold miner Fresnillo reports fourth quarter production report.
In the economic calendar, the Bank of England's credit conditions survey is at 0930 BST, before euro area industrial production at 1000 BST. Later in the day, US MBA mortgage applications are at 1200 BST, retail sales and US producer price index are both at 1330 BST and the Energy Information Administration's crude oil stocks are at 1530 BST.
By Neil Thakrar; [email protected]; @NeilThakrar1
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