European Wrap China GDP and Brexit Discussions Offer Limited Market Lift
European markets gain this Monday as China’s GDP beats forecasts, Eurozone inflation softens and Brexit talks resume in Brussels. Mining stocks are pushing the FTSE 100 higher after an upbeat Chinese growth figure which showed the first GDP acceleration since 2010. There’s now optimism of greater demand for copper, nickel, iron ore and coal. The Eurozone’s consumer prices index rose by 1.3% in June. According to Eurostat, that’s down on 1.4% in May, and further away from the ECB’s target of just below 2%. Investors are now looking ahead to Thursday for when ECB chief Mario Draghi will consider his next interest rate decision. EUR/USD is expected to turn higher despite early weakness. given the break through the $1.1456 level on Friday, it seems likely we will soon head back through last week’s high of $1.1489 soon enough. UK-EU Brexit discussions continue today after some confrontational comments from foreign secretary Boris Johnson and a drive from France towards a hard Brexit. Shares in ITV are gaining after the British broadcaster said it had appointed EasyJet boss Carolyn McCall as its new chief executive.