As China records moderate growth and the U.S. Congress agrees for a raise in the debt ceiling, the impact on the European stock market was visible where they rose for a seventh day. According to the latest data available, China’s economy expanded by 7.8 percent in the third quarter; the Chinese government has set an economic growth target for 2013 of 7.5 percent.
Market observers believe that the double-digit growth of the past must be abandoned to make urgently needed adjustments to the economy. The country is likely to achieve GDP growth of 7.7 percent for 2013, as a whole which is lot better than another major economy such as India which has slowed down a lot. The Asian Development Bank has predicted growth of below 4% for India.
Major Gainers on a Better Trading Day
Schindler Holding AG was the major gainer as its stocks jumped the most since November 2011. The company announced that it is buying back shares and that sent a positive wave among investors. Earlier, Schindler increased 4.3 percent to 127.40 Swiss francs which is the biggest gain since November 2011.
Apart from Schindler Holding AG, Cap Gemini SA gained 2.6 percent after it announced that it is negotiating the merger of Areva SA’s software-services unit.
Whereas the Stoxx Europe 600 Index advanced 0.3 percent to 316.96 at 8:12 a.m. in London on a better trading day, Standard & Poor’s 500 Index (SPA) futures gained 0.1 percent. Similarly, the MSCI Asia Pacific Index rose 0.3 percent amidst the news that China’s GDP figures reported a steady growth rate coming out in line with expectations.
Asian Stocks Too Expected to Fare Better
As the data on the Chinese GDP shows positive growth rate for the Asian giant economy, traders and investors believe that Asian stocks will fare better today. The report coming from various stock markets in Asia indicate that investors are quite right about their prediction; for instance, China’s Shanghai Composite Index gained 0.5 percent today.
However, there was a drop in Japan’s Topix which fell 0.1 percent. Similarly, New Zealand’s NZX 50 Index dropped 0.4 percent. However, Singapore’s Straits Times Index advanced 0.3 percent. Similarly, Australia’s S&P/ASX 200 Index increased 0.7 percent to its highest close since June 2008.
The wave also touched Hong Kong’s Hang Seng Index which rose 1 percent. While South Korea’s Kospi index added 0.5 percent, Taiwan’s Taiex index gained 0.8 percent.
To contact the reporter of this story: Jonathan Millet at email@example.com