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London open: Stocks rise as Chinese data impresses
UK stocks gained on Monday after better-than-expected Chinese data on retail sales and industrial production over the weekend.
Chinese industrial production rose 6.2% in November from a year earlier, compared to the previous month’s 5.6% increase and expectations for a 5.7% gain, the National Bureau of Statistics reveal.
Retail sales in the world’s second largest economy jumped 11.2% in November, beating the 11.1% forecast and following a 11% rise in October.
“Chinese data over the weekend generally supported the picture of a moderate recovery in the industrial sector fuelled by higher credit growth and a slight improvement in exports,” according to Danske Bank.
“While encouraging, we still look for more rate cuts from PBoC to ease the debt burden of Chinese companies.”
Turning to Monday’s agenda the week has kicked off to a quiet start with very few notable economic reports apart from Eurozone industrial production data at 1000 GMT.
The main event this week is the Federal Reserve’s interest rate decision on Wednesday. The Fed is widely expected to raise rates for the first time in nearly a decade by 25 basis points. Tuesday will also be a big day with UK and US inflation figures.
“This time last year we were convinced that the Fed wouldn’t raise rates in 2015. We’ll it looks like we’ll be proved 15 days wrong,” Deutsche Bank analysts said.
“However with all that’s going on in the world and with global nominal growth so low, it’s hard for us to imagine they’ll get very far in their hiking cycle.”
In company news, Astrazeneca advanced after confirming that it is exploring potential strategic options with biotech company Acerta Pharma BV.
Man Group edged higher after confirming that it was in the process of appointing former trade minister Lord Livingston of Parkhead as its new chairman.
Morrison Supermarkets rallied after announcing Greene King chief executive Rooney Anand will join its board as a non-executive director and as senior independent director on 1 January 2016.
