By RTT News, October 18, 2013, 02:18:00 AM EDT
(RTTNews.com) - European stocks are set to open higher on Friday after data showed China's economic growth accelerated for the first time in three quarters, adding to signs the global economy is gathering momentum.
Government data showed that China's gross domestic product expanded 7.8 percent year-over-year in the third quarter of 2013, snapping two quarters of slowing growth, easing fears that the world's second-largest economy is in a sharp slowdown. Among the other data released by the statistical office, industrial output rose 10.2 percent in September, matching forecasts, while retail sales and fixed asset investment both decelerated slightly to grow an annual 13.3 percent and 20.2 percent, respectively.
The Asian markets are turning in a mixed performance, paring early gains. Australia'sS&P/ASX 200 rose 0.7 percent to hit a fresh five-year high, China's Shanghai Composite is rising half a percent, Hong Kong's Hang Seng is adding a percent and India's Sensex is rallying 1.5 percent, tracking a firmer rupee as the U.S. dollar languished near an eight-month low versus the euro amid speculation that short-term fiscal uncertainties in Washington would delay a stimulus tapering. The markets in Indonesia, Malaysia, Japan and New Zealand are slightly subdued.
Closer home, confidence among British households regarding the value of their houses increased to a record high in October, with residents in every region expecting a rise in home values, data from a survey by Markit Economics and Knight Frank showed. The seasonally adjusted house price sentiment index rose to 59.1 from 57.9 in September. The majority of the surveyed households perceived that the value of their homes rose in October for the seventh consecutive month.
Across the Atlantic, the Conference Board's report on leading economic indicators as well as earnings reports from General Electric and Honeywell may influence trading sentiment. Google shares rallied in after-hours trading Thursday after the world's largest Internet search company reported third-quarter sales and profit that topped estimates.
Credit card lender Capital One Financial Corp. reported a decline in third-quarter profit due to lower net interest income and higher costs, while chipmaker Advanced Micro Devices Inc. returned to profit in the third quarter on the back of higher revenue and margins.
In domestic corporate news, French hotel group Accor confirmed its full-year EBIT target despite posting lower third-quarter sales due to unfavorable currency effects.
Senior traders of banks, including Barclays Plc., Citigroup Inc. and Royal Bank of Scotland Group Plc. are under regulatory scanner for potential manipulation of the foreign-exchange market, the Bloomberg reported, quoting four people with knowledge of the probe.
The European markets turned in a mixed performance on Thursday after a last-minute deal to prevent the United States defaulting on its debt suggested the fiscal fight could start all over early next year. The U.K.'s FTSE 100 edged up 0.1 percent, but France's CAC 40 slipped 0.1 percent and the German DAX shed 0.4 percent.
U.S. stocks ended mixed overnight, as investors digested mixed earnings reports and data on jobless claims and manufacturing activity in the Philadelphia region. The Dow ended the day just below the unchanged line, while the tech-heavy Nasdaq and the S&P 500 rose 0.6 percent and 0.7 percent, respectively.
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