FTSE rallies after report of UK wage growth
Asian markets wavered overnight, despite reports of strong growth in the Chinese economy. However, the FTSE 100 has rallied this morning after the latest report from the Office for National Statistics (ONS) showed wages are up and unemployment has dropped in the UK.
The broad Asia-Pacific MSCI index edged down 0.15 per cent, while both South Koreas KOSPI and Shanghais SSEC both dipped slightly. However, the Honk Kong Hang Seng and Japans Nikkei were both unchanged.
European stocks have so far fared slightly better, however. Bolstered by the positive results from the ONS, the FTSE 100 jumped 20 points after first open, before dipping slightly towards noon.
The German DAX index was also up 107 points, or nearly a full percentage point shortly after opening, while Frances CAC was also up over twenty points, or about .45 per cent.
“Equity markets in Europe are slightly higher this morning, with traders cautiously optimistic,” said David Madden market analyst at CMC Markets UK.
“The concerns about geopolitical tensions in relation to Syria and Russian sanctions have faded a little. The broadly positive economic data out of China overnight left traders slightly more hopeful about the state of the global economy.”
According to the latest government figures, the Chinese economy grew by 6.8 per cent in the first-quarter of 2017, slightly ahead of the expected 6.7 per cent expected. The retail sales report showed growth of 10.1 per cent, up from an expected 9.7 per cent. However, continued fears over a US-China trade war may still have Asian investors worried.
Meanwhile, back in the UK, the ONS figures showed that real wage in Britain grew by 2.8 per cent in the year to February, while unemployment in the UK has reached its lowest point in 40 years.