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German Market Rises After China Data

The German market is in positive territory on Friday, after China's manufacturing activity expanded at the fastest pace in 14 months in December. That said, worries related to the U.S. fiscal cliff continued to affect many markets in the region. The Asian markets mostly rose on China data.

In China, the headline HSBC/Markit purchasing managers' index rose to 50.9 in December from 50.5 in November. This was the highest reading in 14 months. New orders expanded at a faster pace this month, while new export orders decreased reflecting slackening external demand.

The Eurozone private sector contracted at a slower pace as Germany recovered at the end of the year, survey results from Markit Economics showed. The composite Purchasing Managers' Index rose to a nine-month high of 47.3 in December, from 46.5 in November.

The turnaround is being led by Germany, for which the PMI has already returned to positive territory, said Chris Williamson, chief economist at Markit.

The Euro Stoxx 50 index of eurozone bluechip stocks is losing 0.02 percent, while the Stoxx Europe 50 index, which includes some major U.K. companies, falling 0.14 percent.

The DAX index is currently adding 0.3 percent.

Daimler is gaining 2.3 percent. BMW is rising 1.5 percent while Volkswagen is modestly higher.

Commerzbank is advancing 0.5 percent while Deutsche Bank is falling 2.4 percent.

Fresenius, HeidelbergCement, Basf and Adidas are seeing notable gains.

Elsewhere in Europe, the French CAC 40 and the UK's FTSE 100 are marginally lower. Switzerland's SMI is losing 0.2 percent.

Across Asia/Pacific, markets ended mostly higher. China's Shanghai Composite Index soared 4.3 percent after upbeat economic data lifted sentiment. Hong Kong's Hang Seng climbed 0.7 percent and Australia's All Ordinaries added less than tenth of a percent. Japan's Nikkei 225 bucked the trend and slid 0.1 percent.

In the U.S., futures point to a higher open on Wall Street. In the previous session, the Dow and the S&P 500 dropped about 0.6 percent each, while the tech-heavy Nasdaq shed 0.7 percent, as lingering concerns about the looming fiscal cliff overshadowed a batch of largely upbeat economic data on retail sales and jobless claims.

In the commodity space, crude for January delivery is adding $0.83 to $86.72 per barrel and February gold is advancing $1.3 to $1698.1 a troy ounce.

by RTTNews Staff Writer

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