European futures are signalling a higher open following a late rally on Wall Street and a positive session in Asia overnight. Asian shares were lifted after China reported first-quarter GDP growth that exceeded expectations. The domestic economy grew by 7.4% in the first quarter, exceeding the 7.3% forecast. However, the data still showed a slowdown from 7.7% in the final quarter last year whilst Chinese industrial output failed to meet expectations. Analysts were expecting a 9.1% rise in output compared to the 8.8% that was announced. Despite the mixed results, Asian stocks rose for the first time in four days with the regional benchmark rallying from two-week lows.
The price of copper rallied on the back of China GDP, having initially trading at a three week low on fears of weakening demand. With China meeting GDP expectations, demand for copper is expected to increase, helping the metal gain 1% in overnight trading. Gold continues its downtrend, tumbling more than 2 percent yesterday and a further 0.5% today on speculation optimistic US consumer prices will give the Federal Reserve more leeway to reduce stimulus.