Chinese GDP Growth Slows

The all-important 19^th National Party Congress will determine the leadership team around President Xi and the Communist Party's direction for the next half-decade.  More than 2,200 delegates have assembled in Beijing for the week-long meeting, with investors closely watching the group’s economic and political announcements, which could potentially have significant global ramifications. In his opening speech, President Xi emphasized his government's steady handling of the economy, and called on party workers to “strive with endless energy” towards national rejuvenation.

In other economic news from the country, factory output increased 6.60% in September from a year earlier, topping expectations.  Meanwhile retail sales grew 10.30% last month from a year ago compared to analyst expectations for a 10.20% rise. AUDNZD, which is prone to fluctuations in China’s economy, has soared in early Thursday trade to around the 1.1135-mark.

Lacklustre figures on British wages put pressure on Sterling, helping lift UK stocks higher on Wednesday. Adjusted for price inflation and excluding bonuses, wages contracted by -0.40% in the three months to August, according to data from the Office for National Statistics. That marked the sixth consecutive drop in inflation-adjusted wages. The unemployment rate met expectations by holding steady at a 42-year low of 4.30%.

Pay growth has been continually lagging behind inflation, raising questions about how quickly the Bank of England can tighten interest rates amid expectations of an initial raise during the November 2^nd MPC decision. FTSE 100 futures finished at 7,506 a session earlier, leaving it within striking distance of the record close set last week. Futures are marginally lower in Thursday Asian trade.