The world’s second-largest economy slowed for a second consecutive quarter as both factory output and fixed-asset investment decreased, down 0.2 percent from an already lower-than-expected first quarter growth rate of 7.7 percent.
The drop to 7.5 percent matched most analysts’ predictions, and
oil also lowered after the report was issued.
Russian stocks hit big gains Friday as oil climbed for a third
straight week and investors looked to up their stake in Russia’s
main GDP driver. WTI crude oil is up 0.02 percent to 105.97, and
Crude is still trading at record highs of 108.84. Prices first
spiked following social unrest and the ousting of Egypt’s
president.
Gazprom, Russia’s oil major, climbed has 3.41 percent. Russia’s
leading lender, Sberbank, has made significant gains and is up
3.47 percent.
The MICEX is down 0.3 percent at 1,393.98 and the RTS index is
down 0.25 percent to 1,345.48.
Brent crude is set to advance for a fourth day as analysts
closely eye unrest in Egypt and potential supply disruption
scenarios. Total US crude oil inventories stood at 383.8 million
barrels as of last week, a slight decline in supply.
Russian traders will closely watch the relationship between the
increase in crude pricing and a ruble that is projected to
continue to weaken. The ruble has edged up slightly against the
dollar to 32.6234, dropping below 33 rubles for the first time
since July 9.
Brent Crude will probably continue its Russian-friendly increase,
before settling to pre-Egypt crisis levels.
London’s FTSE 100 index has taken a big dive, but is slightly
recovering and is trading at 6,544.94. Germany’s DAX is
down 0.55 percent to 8,212.77 and France’s CAC40 is down 0.36
percent to 3,855.09.
Asian floors are making strides despite China’s official
slowdown. The Hong Kong Hang Seng Index has eased and is up 0.12
percent to 21,303.31, the Nikkei has climbed 0.23 percent to
14,506.25, and Australia’s S&P 200 index has gained 0.06
percent.