Shares rose in early trading in Europe on Wednesday after
stronger-than-expected growth data out of China offset market
jitters over an escalation of tensions between Ukraine and
Russia.
The benchmark Stoxx Europe 600 index rose 0.7%, while Germany's
DAX added 0.7%, France's CAC-40 was 0.8% higher and the U.K. FTSE
100 index was up 0.5%.
The early gains follow data showing Asia's largest economy grew
7.4% in the January-to-March period compared with a year earlier, a
touch higher than expectations of 7.3%, but below growth of 7.7% in
the final quarter of last year.
"The reported economic slowdown in China in the first quarter
wasn't as sharp as some had feared," said Lee Hardman, a currency
analyst at Bank of Tokyo-Mitsubishi in London.
The China GDP news helped investors to brush aside developments
in Ukraine, where the military fired its first shots Tuesday in the
fight to regain control of the restive east of the country from
pro-Russian separatists.
The Russian ruble was slightly stronger Wednesday despite the
developments, while the RTS index was up almost 0.2% in early
trade.
Ukraine's currency, the hryvnia, continued to gain ground, after
Monday's three-percentage-point rate rise by the country's central
bank. Most recently, the hryvnia was quoted at 11.75 against the
dollar, up almost 10% from its record low on Monday.
In commodities markets, gold was off 0.1% at $1,301.70 a troy
ounce, and Brent crude oil was 0.1% higher at $109.50 a barrel.
In corporate news, shares in Credit Suisse Group AG fell after
the Swiss bank delivered a disappointing profit figure for the
first quarter of 859 million Swiss francs ($975.47 million), down
from the 1.3 billion francs for the year-earlier period.
Tesco PLC shares rose despite the U.K. retailer posting its
second consecutive fall in full-year profit. For the year to Feb.
22, Tesco's trading profit--which excludes property gains or
losses--fell to GBP3.31 billion ($5.54 billion) from GBP3.45
billion a year earlier, on sales that were largely flat at GBP70.89
billion
Looking ahead, U.K. monthly unemployment figures are due at 0830
GMT, while euro-zone consumer price inflation data will be released
at 0900 GMT.
In the U.S., a speech from Federal Reserve Chairwoman Janet
Yellen at the Economic Club of New York at 1625 GMT will be watched
for clues on the outlook for U.S. monetary policy.
Write to Clare Connaghan at clare.connaghan@wsj.com
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