UK inflation came in at 0.6% today rather than the expected 0.7%. This has caused sterling to drop to £1/$1.326 as the rate of price rises remains well below the Bank of England’s 2% target. This is potentially good news for international shares which report in sterling such as GlaxoSmithKline plc (LON:GSK) (author owns shares), Rolls-Royce Holding PLC (LON:RR) and easyJet plc (LON:EZJ). GlaxoSmithKline’s shares are up 1.2%, Rolls-Royce is up 0.7% and easyJet is down 1.3%.
Eurozone employment figures rose 0.4% quarter on quarter and 1.4% year on year in Q2 according to Eurostat. It estimated that over 232 million people had a job in the EU in Q2, which is the highest number on record. This could affect companies with European operations such as Vodafone Group plc (LON:VOD), Reckitt Benckiser Group Plc (LON:RB) and Sky PLC (LON:SKY). Vodafone is up 0.5%, Reckitt Benckiser is down 0.5% and Sky has declined by 0.1%.
Chinese shares closed flat despite the release of upbeat economic data. Its industrial output grew at the fastest rate in five months in August. This shows that efforts to stimulate the economy could be working. This could help to boost the long term outlook for Asia-focused shares such as HSBC Holdings plc (LON:HSBA) (author owns shares), Standard Chartered PLC (LON:STAN) and Prudential plc (LON:PRU) (author owns shares). HSBC is down 1.3% today, Standard Chartered is flat and Prudential has declined by 1.4%.
Despite this mixed performance, I think there are a number of growth shares around for the long term.
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