20th Jan 2014 07:31
LONDON (Alliance News) - UK shares are expected to open tentatively Monday, following Chinese data that shows economic growth easing and with US markets closed for Martin Luther King Day.
Spreadbetters are calling the FTSE 100 to open flat to marginally lower.
China's economic growth eased in the fourth quarter amid slower gains in industrial production, investment and retail sales, data released by the National Bureau of Statistics showed Monday.
The gross domestic product grew 7.7% year-on-year in the fourth quarter of 2013, following a 7.8% gain in the third quarter. This was slightly better than the 7.6% growth expected but still the lowest level of yearly growth for 14-years. On a quarterly basis GDP expanded by 1.8% in the third-quarter, slower than the 2.0% expected.
The latest GDP data backs up last week's change from the World Bank of its global growth forecasts. The bank upgraded its forecasts for the world economy but predicted that Chinas growth will stay flat this year, at 7.7%.
Separately, the statistical office reported that China's industrial production grew 9.7% year-on-year in December compared with an expected 9.8% gain and slower than a 10% growth reported in November. In 2013 as a whole, industrial production grew 9.7% compared with 2012.
China's retail sales grew 13.6% annually last month in line with expectations. In November, sales recorded a 13.7% increase. Retail sales rose 13.1% for the full year of 2013.
Shares are broadly lower in Asia following the Chinese data miss. The Hang Seng is down just over 1%, the Nikkei is down about 0.6%, and the Shanghai Composite has closed down 0.8% at 1,991.25, below 2,000.00 for the first time since July.
Meanwhile in the UK, house prices increased by 1.0% month-on-month in January, to an average price of GBP243,861, according to the latest survey from Rightmove. The rise follows a 1.9% fall in December and 2.4% decline in November. Year-on-year, prices increased 6.3%, the sharpest rise since November 2007, Rightmove said.
Also already released Monday morning, the German Producer Price Index has shown factory prices in Europe's largest economy rising at just 0.1% month-on-month in December, up from a decline of 0.1% in January and more than the flat reading expected by economists. On a yearly basis prices are still seen as declining, by 0.5%, although this is a slower decline that the 0.7% expected by economists.
With little else in the data calendar Monday, and the US stock market closed for Martin Luther King's Birthday, a relatively quiet session is expected.
Of the few corporate released Monday, InterneQ has already put out a positive trading update and AIM-listed Allocate Software has said it's on track to meet full-year expectations.
By Jon Darby; [email protected]; @jondarby100
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