Metals rise on China data, pound drops with euro

Dubai - Industrial metals rallied with mining companies as optimism for global growth was boosted by data from China. Oil struggled after five days of gains while the euro and pound fell as Brexit negotiations resumed.

Zinc and iron ore were the biggest winners and precious metals joined the advance after figures showed China’s economy grew faster than expected in the second quarter. The jump in miners failed to spur the Stoxx Europe 600 Index toward a fourth day in the green as real-estate companies and banks fell. The dollar strengthened and Treasury yields slipped.

The growth figures for the world’s second biggest economy follow US inflation data last week that appeared to undermine the case for tighter monetary policy and spurred stocks to yet more records. Focus will now shift to earnings season, which ramps up this week with Microsoft and Unilever among those set to report.

On the radar this week:

The European Central Bank meets on Thursday. Bloomberg Intelligence expects no change then, and no rate hike before 2019. Reuters cited unidentified officials as saying the bank is keen to keep asset purchases open-ended. 

The Bank of Japan is forecast to stand pat at its meeting Thursday. Round two of Brexit talks get underway in Brussels. Australia’s central bank on Tuesday releases minutes of its July 4 gathering. Government data on the labour market is due Thursday.

Here are the main moves in markets:

Asia

Despite the GDP data the Shanghai Composite Index retreated 1.4% amid concerns over the implications of a weekend meeting where President Xi Jinping said the central bank would play a greater role in defending against risks.

The kiwi fell after the deputy governor of New Zealand’s central bank said a lower currency would help rebalance growth. Japanese markets were closed for Marine Day. South Korea’s Kospi Index advanced to an all-time high.

Stocks

The FTSE 100 Index rose 0.2% at 11:17. Europe’s Stoxx 600 Index declined 0.2% even as basic resources shares climbed 0.8%. US stock futures fell 0.1%.

Currencies

The euro and pound both weakened 0.2% to $1.1450 and $1.3072, respectively. Bloomberg’s Dollar Spot Index rose 0.1%.

Bonds

The 10-year yield on US Treasuries fell three basis points to 2.31% after dropping five basis points last week.

Commodities

West Texas Intermediate crude fell 0.1% to $46.48 a barrel. Gold rose 0.2% to $1 230.46 an ounce and copper climbed 1% to $5 983.50 per metric ton. Zinc gained 2% and iron ore added 2.4%.

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