Euro rises against dollar on signs of Chinese growth
The euro hit a six-week high and shares rose on Monday as signs of quicker Chinese growth boosted investors’ risk appetite although gains were capped by U.S. budget worries.
Official data from China’s National Bureau of Statistics showed the country’s manufacturing sector expanded to a seven-month high in November, with the Purchasing Managers Index (PMI) picking up to 50.6. A PMI reading from HSBC also showed improvement, gaining to 50.5 from 49.5 in October. The data, along with a host of other recent positive indicators, added to hopes the world’s second largest economy would recover from its economic slump. China’s growth slowed to 7.4 percent in the third quarter but is widely expected to pick up to official target levels in the final quarter of the fiscal year.
In the UK Manufacturing PMI rises to 49.1 versus revised PMI of 47.3 in October. The index remains below the 50 mark that separates growth from contraction. However, the British manufacturing activity shrank much less than expected in November although the sector remains in a precarious state as orders edged down, a survey found on Monday. In the FX market, the euro is slightly firmer against the dollar. The GBP/EUR is currently trading at a range of 1.2298 – 1.2331.
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