Market Update: Robust growth data from China drives European markets higher – 15.07.2013

Source: Henderson Global Investors

US markets closed slightly higher on Friday (Dow Jones flat and S&P 500 +0.3%). The S&P 500 Index closed at a fresh high as Wells Fargo beat analyst estimates with reports of strong profits. JPMorgan also reported strong earnings, aided by low interest rates and a booming mortgage lending business. However, shares in the bank lost ground over concerns that rising interest rates will slow the mortgage lending market. The Vix Index (a measure of volatility) fell below the 14 level on Friday for the first time since late May.

In Europe, the FTSE 100 is up 0.7% while the FTSE Eurofirst 300 is 0.5% higher at the time of writing. Mining and oil stocks are driving the market higher as investors are encouraged by the latest Chinese gross domestic product (GDP) figures. Among the top gainers were Glencore Xstrata and Mexican silver miner Fresnillo up 1.9% and 2.8% respectively. G4S fell 1.7% after reports that it was considering a rights issue to raise cash to shore up its balance sheet.