China's gross domestic product grew 7.4% in the third quarter compared to a year earlier, slowing from the second quarter's 7.6%, according to National Bureau of Statistics data released today. This marked a near year low for the growth trend and markets are betting it to form a bottom. In other data, the value-added industrial output in China rose 9.2% in September from a year earlier, accelerating from an 8.9% on-year increase in August. Chinese housing market is also showing signs of stabilization. The latest data reveals that average property prices in 70 Chinese cities in a government survey were flat in September over the month after recording gains for previous three months
Meanwhile, the Euro slipped back from its one-month highs of 1.3138 against the US dollar as the traders eyed the outcome from the two-day summit of Eurozone finance ministers that started in Brussels yesterday. The prospect of an early debt relief deal is receding as German chancellor Angela Merkel resists pressure to escalate her response to the European banking crisis.
Merkel has reportedly stated before the summit that the development of a new euro zone-banking supervisor within the European Central Bank must take priority. The meeting is expected to bring in no greater results for the debt heavy PIIGS nations given that deeper economic integration looks elusive for the region and a slowing global economy is making it difficult to push the austerity measures amid heavy public uproar.
European equities are trading slightly lower after a mixed opening. COMEX Gold could drop back again to one month lows towards $1730 per ounce given that the positive momentum is fading. MCX Gold futures edged up in early moves but topped out at Rs 31214 per 10 grams. The contract trades at Rs 31160, up Rs 20 per 10 grams on the day with 2.31% increase in the open interest.
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