International equity markets traded with mixed results on Friday night amid positive data from China and concerns about the US debt ceiling. Statistical data showed that China’s GDP climbed 7.9% in the fourth quarter last year, higher than the prior quarter’s 7.4%.
In the US, the Treasury Department has announced that the nation will go over its $16.4 trillion borrowing authority come mid-February to March.
House Speaker John Boehner commented that the Republicans plan to vote for a three-month extension of the borrowing authority in order to steer the Senate to come up with a budget.
In Europe, the UK’s FTSE added 22 points (+0.4%) to settle at 6154 whilst Germany’s DAX fell 33 points (-0.4%) to settle at 7702. France’s CAC declined three points (-0.1%) to settle at 6154.
In the US, the Dow Jones climbed 54 points (+0.4%) to settle at 13650 whilst the S&P increased five points (+0.3%) to settle at 1486. The Nasdaq traded flat to settle at 3135.
In the commodity space, oil traded higher on the back of China’s positive GDP results and after the International Energy Agency lifted its forecasts.
Crude oil for February delivery added $0.07 to settle at $95.56 per barrel. Gold for February delivery declined $3.80 to settle at $1,687 per ounce as demand for the US dollar increased.
In the currency space, the Japanese yen traded lower due to concerns that the BoJ might implement further monetary easing to spur economic growth.
The euro fell against most of its counterparts after ECB board member, Mr. Benoit Coeure, mentioned that bank repayments of long-term loans are unlikely to impact the region’s overnight interbank rates. The US dollar finished higher against its peers as markets did not react as strongly as expected on China’s GDP data.
There is no major local economic data slated for release today.