China’s economic growth could slide to 6.5 percent this year versus about 6.7 percent in 2016, according to reports on Tuesday, the government run source also suggested that a one-off devaluation could help stabilize the yuan currency. In an article in the Shanghai Securities News, the forecasting department at State Information Center (SIC) has also stated that momentum from new technology would continue to stimulate economic growth, however it would not be merely enough to stop the broader slowing trend. Other forecasts suggest that industrial output could grow 5.9 percent this year, while China’s currency could be further devaluated after having fallen nearly 7 percent last year.
European markets started Tuesday on a bullish note, jumping higher on strong figures from China and Europe. Investors appear more confident today, after solid manufacturing activity data in Europe and China has reassured the markets. In today’s European markets Germany’s DAX lost 0.1 percent at 11585.50, U.K.’s FTSE 100 added 0.5 percent at 7176.50, France’s CAC 40 added 0.4 percent at 4900.80 while the Euro Stoxx 50 added 0.3 percent at 3313.50 as of 9:30 GMT.
On other news, Tuesday data showed French inflation reaching its highest level since May 2014 as French consumer prices rose by 0.8 percent year-on-year, driven essentially by an increase in energy prices.
Chinese markets finished up 1 percent on Tuesday, following a survey showing a pickup in China’s factory activities for December. Specifically, China’s Caixin Manufacturing Purchasing Managers’ index (PMI) rose to 51.9, versus a 50.9 figure in November and beating forecasts for 50.7, on the back of increased demand. It should be noted that a reading above 50 represents expansion in a sector, whereas a reading below 50 represents contraction.
In today’s Asian markets, Australia’s S&P/ASX 200 added 1.2 percent to close at 5733.18, China A50 added 1 percent to close at 10065.20, Hang Seng added 0.5 percent to close at 22122.00 while India’s Nifty 50 added 0.3 percent to last trade at 8198.80 as of 9:20 GMT.