ROME, April 18 (Xinhua) -- Europe's main stock exchanges opened higher on Tuesday, following news that China's economy exceeded expectations in the first quarter (Q1) of 2023.
China's National Bureau of Statistics (NBS) announced on Tuesday that the country's economy grew by 4.5 percent year on year in Q1, 2023. Compared to the last three months of 2022, the economy expanded by 2.2 percent.
"China's national economy made a good start this year, and market expectation saw significant improvement," said NBS spokesperson Fu Linghui at a press conference.
The news of China's economic performance provided a boost to European markets, as investors speculated that the performance of the world's second largest economy would benefit global trade. However, as Tuesday's trading session progressed, profit-taking led to marginal gains by the end of the day.
Nevertheless, the increase in stock markets was seen as a positive development for markets that have been battered by high inflation sparked by the conflict between Russia and Ukraine, worries about the financial sector after the failure of two regional banks in the United States, and slowing international commerce.
"Without a doubt, good news from the Chinese economy is good news for other economies," said Javier Noriega, chief economist with Milan-based investment bank Hildebrandt and Ferrar, in an interview with Xinhua. "China's economy has emerged from the coronavirus lockdowns and appears to be returning to its pre-pandemic form."
In European markets, the blue-chip index on the London Stock Exchange rose by 0.4 percent for the day, while the Paris Stock Exchange finished the session 0.5 percent higher. Frankfurt's main index was up by 0.6 percent, gains in Milan were 0.7 percent, and Amsterdam's blue chips closed 0.6 percent higher. However, all of these closing gains were smaller than mid-session highs.
