LONDON, U.K. – The Euro stock market edges higher following the analyst expected increase in the gross domestic product (GDP) figures of China.
Euro shares were seen trading cautiously higher early in the session on Friday after the release of the GDP numbers of China, which indicated a growth that is in line with the market’s expectation. The rise in China’s GDP numbers lifted the global markets on Friday morning, including Euro stocks.
During the morning session on Friday, the FTSE 100 index in Britain was seen increasing by about 12 points from its previous close towards 7,622. The DAX index in Germany also climbed early in the session by an impressive 60 points to reach higher at 13,489. And based on the IG data, the CAC 40 index in France is also looking towards an optimistic open as it is expected toad about 17 points higher at 6,056.
China’s economy, which is considered as the second largest all over the world and next to the US, grew in 2019 by around 6.1%. Although last year’s GDP growth is recorded as the slowest for the country in the past 29 years, it is still in line with the expectations of analysts, even despite the long-standing trade war between the US and China, which affected both of their economies. Fortunately, the two sides have reached a truce, and phase one of their trade agreement was signed this week.
Elsewhere, the GDP growth in China for 2019 has also driven most in the global market. In Asia, particularly, stocks were seen trading much higher in response to the expected GDP figures. The Hang Seng index in Hong Kong led the gains with its 0.5% advance.
Wall Street stocks are also showing more strength and are expected to extend gains after the strong earnings report released by major banks. The S&P 500 index hit fresh highs on Thursday and is looking to continue its positive momentum to end the trading week on Friday.
In the corporate front, Richmond, a Swiss luxury goods behemoth, reported on Friday that its sales growth has significantly slowed down, citing Hong Kong’s political unrest weighing down on its turnover in the fourth quarter.
On Thursday, Herbert Diess, CEO of German carmaker Volkswagen, said that they must fast-track urgent reforms to avoid experiencing the same doom as Nokia, which renounced its dominance in the handset market to Apple.
Meanwhile, market players wait for more market-moving releases later on Friday. The retail sales of the UK are posed for release at around 9:30 a.m. London time, and the construction output numbers for November and December’s inflation figures out of the eurozone at 10 a.m.