Markets up in face of weaker Chinese data

UK and European stockmarkets have risen in early trading in spite of the Chinese economy growing at a slower rate for the second successive quarter.

Official figures showed China grew by 7.5 per cent in the second quarter of 2013, compared with 7.7 per cent in the first three months of the year.

But in spite of the potential knock-on effects that weaker demand from China is likely to have for global growth, markets appeared to have shrugged off the data.

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The FTSE All Share index rose 0.7 per cent this morning, led by Lloyds Banking Group, which rose 1.3 per cent on the back of positive news regading the government’s plans to sell part of its stake in the bank.

The Euro Stoxx 50 index was up 0.6 per cent, while French and German indices were also trading higher.

Zhu Haibin, an economist with JPMorgan, told the Financial Times: “I think the second half will be even weaker. The government’s tolerance for slower growth is definitely higher. 7 per cent is probably the growth floor.”

China, the world’s second largest economy, has seen its annual growth slip from 11.9 per cent in the first quarter of 2010 to 7.5 per cent in the second quarter of 2013.