Chinese Growth Lifts UK Listed Miners & UK Retail Sales Eyed -- City
LONDON -- (Marketwire) -- 01/18/13 -- City Index UK: Stronger than
expected Chinese growth figures helped to lift UK listed miners in a
slow start to trading on Friday in London. Chinese GDP bounced back
to grow at 7.9% in the fourth quarter, its first growth in expansion
for 7 quarters and lofting optimism that resource demand can continue
to track a similar rate of expansion.
Read Full Article at cityindex.co.uk: Chinese growth lifts UK listed
miners & UK retail sales eyed
Listed UK miners are dependent on Chinese demand for resources. The
correlation between Chinese GDP and the FTSE 350 mining sector is
undeniable. As such, it is no real surprise to see miners such as BHP
Billiton lifted in trading today, with Chinese GDP beating forecasts
of 7.8% growth in Q4.
Chinese industrial production increased to 10.3% against expectations
of 10.1% whilst retail sales also grew faster than expected to 15.2%.
The key here however will be sustainability. Investors in mining
stocks can ill afford volatility in Chinese growth after consecutive
quarterly slowdowns and given the rate of spending in Chinese
infrastructure to help speed growth. We are still awaiting broader
evidence of the People's Bank of China's next move in terms of
stimulus and Chinese inflation -- which increased to 2.5% last month
(stronger than expected) -- will inevitably be a key measure to take
into consideration for further monetary expansion.
The FTSE 350 mining sector has underperformed the benchmark UK Index
already this year, despite the positive tone to trading and risk
appetite. Read more
About City Index:
City Index is one of the world leaders in spread betting and CFD
trading. Established in the UK in 1983 we have grown to become
leading providers of contracts for difference, Forex and spread
betting over the past 29 years.
Spread betting is a leveraged product, meaning that you can take a
position by initially depositing just a small percentage of the full
value of your trade -- typically between 1% and 10% of the total
Your losses are magnified in exactly the same way as your gains if
the market moves against you and can result in losses exceeding your
initial outlay. Please ensure you fully understand the risks
Press spacebar to pause and continue. Press esc to stop.