European markets head for higher open as investors digest Chinese growth data
LONDON — European stocks are expected to open higher on Monday as global markets digest the latest growth data out of China.
The U.K.’s FTSE index is seen opening 22 points higher at 7,565, Germany’s DAX 47 points higher at 15,930, France’s CAC 40 up 20 points at 7,163 and Italy’s FTSE MIB 49 points higher at 27,593, according to data from IG.
Markets in Europe and Asia Pacific will be digesting the latest gross domestic product data from China on Monday with official data showing the world’s second largest economy grew faster than expected between October and December. U.S. markets are closed on Monday for Martin Luther King Jr. Day.
Chinese shares rose Monday in a mixed trading session across the Asia-Pacific with the Shanghai composite adding 0.32% while the Shenzhen component gained 0.89%.
Numbers from China’s National Bureau of Statistics showed the Chinese economy grew by 8.1% in 2021, slightly below the market’s expectation for around 8.4% growth for the year. In the fourth quarter, China’s GDP rose 4% from a year ago, topping a Reuters poll that predicted a 3.6% increase. Industrial production also rose and beat expectations, but retail sales had more muted growth.
Economists were expecting Monday’s data to underline a slowdown in growth, in part due to factors like China’s strict measures to contain the omicron Covid variant as well as problems in its property sector and sluggish consumption.
In Europe on Monday, investors will be keeping an eye on the latest Eurogroup meeting of finance ministers in Brussels. Data releases in Europe on Monday include Italy consumer price data for December and final inflation data for the euro zone in December.
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— CNBC’s Saheli Roy Choudhury contributed to this market report.