UK Stocks End Higher as China Stimulus Hopes Rise

January 19, 2016 Share Print 0

Stocks in the U.K. finished higher Tuesday, rising along with other global markets, as slowing growth in China raised hopes for further stimulus in the world’s second-largest economy.

The FTSE 100 gained 1.7% to end at 5,876.80. The British blue-chip index achieved its best showing since Dec. 23, according to FactSet data.

Shares of mining companies helped lead the way higher. Commodities producer and trader Glencore PLC jumped 5.1%, while platinum and iron ore miner Anglo American PLC closed 2.6% higher. Oil producer Royal Dutch Shell PLC bulked up by 2.4%.

China, a major buyer of commodities, posted fourth-quarter growth of 6.8%, the slowest rate of expansion since 2009. Full-year 2015 gross domestic product growth of 6.9% was the weakest pace of expansion in 25 years. Worries among investors about slowing in China’s economy and the health of its financial system have contributed to a selloff in equity markets worldwide this year.

via MarketWatch

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Alfonso Esparza

Senior Currency Analyst at Market Pulse

Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He has been published by The MarketWatch, Reuters, the Wall Street Journal and The Globe and Mail, and he also appears regularly as a guest commentator on networks including Bloomberg and BNN. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.