FTSE gains 0.92% after China data reassures

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The FTSE 100 has risen by 0.92 per cent in early trades after Chinese economic growth numbers came in line with market expectations.

As of 0845 BST, the blue-chip index was up 60.34 points to 6,605.28 with Fresnillo, Glencore Xstrata, Smiths Group, Schroders and BT showed the strongest gains immediately after opening. Other European markets also opened higher.

Chinese GDP growth slowed to a year-on-year 7.5 per cent in the second quarter. Although this is the second quarter running that Chinese growth has eased, the outcome was widely expected by economists and the markets.

CMC Markets senior market analyst Michael Hewson says: “The latest Chinese economic data showed that the world’s second biggest economy is more or less growing in line with lowered market expectations, though there does appear to some growing signs of stress.

“These numbers appear to have been greeted with some relief after comments on Friday by the Chinese finance minister that suggested that we could well see a much weaker number.”