European markets up on positive economic data from China

On Wednesday stocks in Europe advanced as economic data from China lifted mining shares after a day of market turmoil sparked by the latest shakeup in the Trump administration. The euro slipped as Mario Draghi said recent gains weren’t all warranted by economic fundamentals.

The Stoxx Europe 600 Index reversed some of Tuesday’s 1 percent drop, with raw-material producers outperforming after factory output and investment growth in China unexpectedly accelerated. U.S. equity-index futures also climbed. Benchmarks dropped across Asia earlier after the sudden firing of U.S. Secretary of State Rex Tillerson. U.S. Treasuries held onto yesterday’s gains while the dollar edged lower. Crude oil halted a decline.

The Chinese data boosted most industrial metals, with copper heading for a two-week high. That helped lift investors’ spirits after a day in which U.S. political risks rocked markets.

Meanwhile, Draghi said in a speech the euro’s recent gains were due to more to external factors than euro-area economic growth, and might weigh on inflation. The European Central Bank president also noted that adjustments to monetary policy will remain predictable as policy makers look for further evidence that inflation is moving in the right direction.

Tillerson’s ouster raised concerns of a new guard in the White House that may take a harder line on trade, advancing President Donald Trump’s agenda of imposing tariffs. Trump nominated CIA director Mike Pompeo, an ex-congressman who has endorsed “pushing back against the Chinese threat,” to replace Tillerson.

The Stoxx Europe 600 Index rose 0.3 percent as of 10:56 a.m. London time. Germany’s DAX Index increased 0.3 percent. Futures on the S&P 500 Index climbed 0.3 percent. The MSCI Asia Pacific Index fell 0.5 percent. Japan’s Topix index dropped 0.5 percent, Hong Kong’s Hang Seng sank 1 percent, South Korea’s Kospi lost 0.3 percent and Australia’s S&P/ASX 200 slid 0.7 percent.

This article was compiled by BOV Asset Management Limited, a member of the BOV Group. BOV Asset Management,TG Complex, Suite 2, Level 3, Brewery Str., Mriehel BKR 3000. Email: infoassetmanagement@bov.com Internet address: www.bovassetmanagement.com. BOV Asset Management is licensed by the MFSA.