European stocks opened higher Wednesday, reassured by a raft of data out of China showing government spending has helped the economy to stabilize.
China’s GDP (gross domestic product) grew 6.7 per cent in the year to September, precisely in line with forecasts, with tepid private investment compensated for by robust government spending and a heated property market. Industrial output was the key disappointment and concerns persist that unsustainable credit growth was a key support factor in the numbers.
Tuesday saw another leg lower in expectations for a December rate hike on the back of marginally moderating U.S. inflation data. This, in conjunction with confusion over the U.K.’s process for leaving the EU, resulted in a slightly weaker dollar against the British pound and yields of both countries’ benchmark government bonds slipping.
