Here are the top five things you need to know in financial markets on Friday, July 15:
1. China GDP beats, but private investment growth hit record low
China’s gross domestic product (GDP) rose 6.7% in the second quarter ended June year-on-year period, beating the 6.6% increase forecast by analysts.
The number matched the first quarter reading and was still the slowest pace since the financial crisis.
Quarter-on-quarter, the world’s second largest economy grew 1.8%, better than the 1.6% increase expected.
Still private investment growth shrank to a record low while property investment showed signs of fatigue.
2. Pound on track for best weekly gain against dollar since 2009
GBP/USD was on track on Friday to book its best weekly gain since 2009, emboldened by the faster-than-expected appointment of Theresa May as the new U.K. Prime Minister and the decision of the Bank of England (BoE) to hold rates steady.
The rally in sterling came in a rebound from 31-year lows as economic uncertainty was exacerbated after the U.K. voted to leave the European Union. The pound remains approximately 10% below its pre-referendum level against the dollar.
3. Global stocks mixed as attack in Nice weighs on sentiment
Asian shares traded mostly higher as the better-than-expected Chinese GDP caused a sigh of relief over the slowdown in the world’s second largest economy.
However, European stocks traded lower in European morning trade on Friday, halting the recent rally after a deadly terror attack in Nice left more than 80 dead and around 20 critically injured. The benchmark Euro Stoxx 50 traded down 0.66%, while France’s CAC 40 fell 0.66%.
U.S. futures also pointed to a lower open on Friday, as investors locked in profits after yet another record close in the prior session. At 9:53AM GMT, or 5:53AM ET, the blue-chip Dow futures slipped 4 points, or 0.02%, S&P 500 futures inched down 2 points, or 0.08%, and the Nasdaq 100 futures gave up 2 points, or 0.04%.
4. Slew of U.S. data on tap
Investors will focus on a score of data out stateside with particular attention paid to June inflation figures, retail sales for the same month and the preliminary read of consumer sentiment in July from the University of Michigan.
Also set to be released are the July NY Empire State manufacturing index, June industrial production and May business inventories.
Markets will digest the data to try and glean clues for its effect on the Federal Reserve’s (Fed) policy stance as various policymakers sent mixed signals.
While Philadelphia Fed president Patrick Harker said Thursday that the FOMC could raise short-term interest rates as much as twice this year, three other Fed officials signaled that they were in no rush to raise rates.
5. Crude down 1% on continual glut worries
Oil prices fell in early trade on Friday on concerns over the supply glut, though positive growth figures out from China helped to pare losses.
Investors continued to digest higher-than-expected U.S. stockpiles that were released throughout the week and reports of swelling supply levels among top OPEC producers such as Saudi Arabia and Iran.
U.S. output would be in focus later in the session with the weekly Baker Hughes’ data. According to oilfield services provider, the number of rigs drilling for oil in the U.S. increased by 10 last week to 351, marking the fifth increase in six weeks.
The renewed gain in U.S. drilling activity fueled speculation that domestic production could be on the verge of rebounding in the weeks ahead, underlining worries over a supply glut.
U.S. crude oil futures lost 0.92% to $45.26, at 9:55AM GMT, or 5:55AM ET, while Brent oil fell 0.97% to $46.91.