Market update: Chinese trade data drives mining stocks higher

Source: Henderson Global Investors

Wall Street was in an upbeat mood yesterday, with the Dow reaching a new record high (S&P 500 +0.4%; Dow Jones +0.4%) as the earnings season started to warm up. First Solar (+45.5%) reported earnings and revenue that surpassed analysts’ expectations. At the sector level, energy stocks were among the outperformers, benefiting from Chinese inflation data that was more benign than expected.

Additionally, overnight, trade data from China indicated domestic demand was gaining momentum: imports rocketed 14.1% year-on-year in March – although some market commentators have raised concerns about volatility and discrepancies in the data. Elsewhere in Asia, South Korean stocks rose despite indications the North may be preparing to launch a missile attack: the North’s threats are raising the odds of an interest-rate cut in the South.

European equities are moving higher this morning (FTSE Eurofirst 300 +0.8%; FTSE 100 +0.6%), with mining stocks outperforming given positivity surrounding the latest Chinese trade data. Looking ahead, the US Federal Reserve will release minutes from its March policy meeting later today.