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Daily Review 28.10.2016

UK’s economy brushes off ‘Brexit effect’ as GDP expands for fifteen straight quarters

United Kingdom’s economy once again showed resilience against the aftermath of the June 23 vote to leave the European Union as its growth domestic product expanded more than expectations in third quarter and stretched its upbeat performance to fifteen quarters.

Based on the preliminary GDP reports from the National Statistics released on Thursday by the Office for National Statistics, the UK economy grew by 0.5 per cent from months July to September, faster than the consensus expectations from analysts of just 0.3 per cent.

GDP figures slowed down from 0.7 per cent in the previous quarter but the recent data showed that the economic doom predicted after the controversial vote last June has yet to produce waves in the economy.

The year-on-year basis growth spiked to 2.3 per cent higher, compared to just 2.1 per cent print expectations, supported by the 0.8 per cent rise in the dominant service sectors.

With the upbeat data, the FTSE 100 futures gained grounds as it added 28.48 points or 0.41 per cent, to close at 6 986.57.

Meanwhile, Britain’s pound spiked higher after the release but erased some gains in the close and skid back below 1.22 versus the US dollar.

Asian stocks finish lower on weak Chinese economic data and bearish oil prices

Equity markets across Asia closed in the red on Thursday trading amid decline in oil prices and disappointing records on China’s economy.

Oil prices fell to its three-week low yesterday while China’s industrial sector slowed down as it registered a 7.7 per cent surge in profits, sharply lower from the 19.5 per cent growth recorded in the second quarter.

Japan’s Nikkei fell 0.3 per cent, Australis’s ASX shed 1.2 per cent and Taiwan’s Taiex closed 0.7 per cent lower.

Chinese stocks also lost ground as Shanghai Composite finished 0.1 per cent down after the release while Hang Sang Index and China Enterprises Index lost 0.8 and 0.9 per cent respectively.

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