China’s economy better than expected

Daily Analysis - 17/04/2019

China grew more than 6% while Asian stocks were mixed

chinas-economy


On Wednesday Asia equities remained mixed. The reason behind that was the announcement of better than anticipated economic figures from China.

China announced that its economy expanded 6.4% in the Q1 of 2019. That number was much greater than expected and beat expert’s expectations.

A Reuter’s survey prognosticated that China's GDP would increase by 6.3% year-on-year in the first 90 days of the year.

Chinese stocks moved higher among the Shanghai composite growing fractionally and the Shenzhen component scoring more than 0.20. The Shenzhen composite climbed about 0.4.

Dow is looking good


On Tuesday the popular Dow Jones grew while the corporate earnings started to kick in. A boost from Boeing shares also was much appreciated by the Dow.

The Dow closed the day higher by 67.85 points at 26,452.65 while Boeing earns 1.7%. Boeing increased following the FAA statement that a 737 Max software update is “operationally suitable.”

The Nasdaq Composite improved 0.3% to 8,000.20 while the S&P 500 increased by 0.05% to close at 2,907.05.

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Gold could move much higher according to experts


According to Martin Huxley, a precious metal expert, Gold lately was mainly been stuck in a range of within $1,217 to $1,330. However, he said that may change. Martin Huxley said to CNBC on Tuesday

“I think that we expect gold to continue to trade pretty much within that range for the coming months,”  “But over the second half of the year we expect it then to grind higher, and potentially it could test 1,400 towards the end of the year,” he added, referring to gold’s price per ounce in relation to the dollar. On Tuesday Spot gold was at about $1,286.644 an ounce.

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Aussie scores 60-day top


On Wednesday the AUD scored a 60-day top following some releases that confirmed a robust Chinese economic increase for the Q1. That supported Australia’s currency movement to obsolete some earlier losses.

Aussie is particular susceptible to the economic prosperity of China due to the fact that China is the largest trading partner for Australia.

The Aussie was up about 0.2% at $0.7189 after reaching its strongest level since last year. $0.7205.

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