(RTTNews) – European shares could open on a positive note on Friday, on hopes that China could step up stimulus measures to maintain stable economic growth.
The country’s central bank has stepped up liquidity injections through medium-term policy lending, in light of the challenges arising from the housing crisis and weak demand.
Data showed earlier today that China’s industrial production rose 6.6 percent year-on-year in November, better than expectations for a 5.6 percent increase, up from 4.6 percent in October.
On the other hand, retail sales rose 10.1 percent year-on-year – less than expected for 12.5 percent growth, but up from 7.6 percent in the previous month.
Fixed asset investment rose 2.9 percent year-on-year – unchanged from October and missing expectations for a 3.0 percent gain.
The unemployment rate stood at 5.0 percent, in line with expectations and unchanged from the previous month.
Asian shares were largely higher, with markets in Hong Kong and Japan leading regional gains following dovish Fed commentary and positive economic data from China.
Trading later in the day could be affected by reactions to flash PMI data from the Eurozone, UK and US
The dollar languished near a four-month low, leaving gold prices on track for a weekly gain.
Oil rose after rising about 3 percent on Thursday, thanks to a weaker dollar and a bullish forecast from the International Energy Agency (IEA) on oil demand.
US stocks posted modest gains overnight to extend the previous session’s strong rally, with strong retail sales for November and hopes of deeper rate cuts next year supporting sentiment.
Weekly unemployment claims were 202,000 for the week ending Dec. 9, lower than the estimated 220,000.
The Dow Jones rose 0.4 percent to hit a new record high, while the tech-heavy Nasdaq Composite rose 0.2 percent and the S&P 500 rose 0.3 percent to hit its best closing level in almost two years.
European shares closed strongly on Thursday as investors welcomed monetary policy announcements from the Federal Reserve, the Bank of England and the European Central Bank.
While the Fed hinted at three rate cuts next year, the ECB pledged to remain tight for as long as necessary, and the BoE resisted rate cuts.
The pan-European STOXX 600 climbed 0.9 percent to close at a 22-month high.
Britain’s FTSE 100 rose 1.3 percent and France’s CAC 40 added 0.6 percent, while Germany’s DAX finished marginally lower.
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