[ad_1]
Foreign exchange markets reflected an improvement in risk sentiment after the weak news on China's economic growth was offset by the words of support expressed on Friday by the Chinese authorities.
In addition, an official from the European Union has quieted criticism of Italy's budget proposals, helping to ease fears of a clash between Rome and Brussels and strengthening the euro.
European Commissioner for Economic Affairs Pierre Moscovici said that Italy is firmly committed to the European Union and the euro and that Brussels would not interfere in Italian economic policies.
L & # 39; euro
EURUSD + 0.3755%
improved after comments, bringing his modest gains to $ 1,1455, up $ 1,1453 on Thursday night.
The fear of a fiscal battle between Italy and the EU against plans to widen Rome's budget deficit is a concern for investors, driving up Italian bond yields and putting pressure on Italian banks' shares.
There are fears that the eurozone's third economy is too important for a Greek-style bailout, and the threat of a fiscal fight has heightened concerns over demand for Italian government bonds after the central bank has stopped buying assets.
The entire finance bill will be submitted to the Italian Parliament no later than Saturday, where it will have to be approved by the end of the year.
Last Thursday, China released its GDP growth figures for the third quarter, a much-awaited data for investors around the world, as the health of the Chinese economy has implications for global growth. Beijing recorded 6.5% year-on-year growth between July and September, down from 6.7% in the previous quarter and lower expectations than 6.6%. %. This is the worst growth recorded by the country since 2009.
The People's Bank of China, its securities regulators and banks and insurers on Friday issued favorable statements to the stock market and positive economic fundamentals, easing investor fears and raising Asian equities . Shanghai Composite Index in China
SHCOMP, + 2.58%
ended Friday up 2.6% after falling nearly 3% on the previous trading day.
Do not miss: Here's why investors are worried about China's next decision
The Chinese yuan, which had reached levels never seen since January 2017 earlier this week, strengthened against a weaker US dollar during Friday trading. A dollar bought 6.9292 yuan
USDCNY, -0.1196%
in Beijing and 6.9350 yuan
USDCNH, -0.0461%
in the offshore market.
ICE US Dollar Popular Index
DXY, -0.15%
was meanwhile down 0.1% to 95,787. The gauge is on track for a 0.6% gain for the week, reversing the losses of the previous week.
On the Brexit front, British Prime Minister Theresa May said London would be ready to extend its one-year transition period, prompting strong criticism from its own pro-party members. Brexit. An extra year of negotiations would mean more uncertainty for the struggling UK pound
GBPUSD, + 0.1690%
for a long time. Until now, the pound has fallen about 3.5% during the year.
The last pound bought $ 1.3043, up from $ 1.3018 on Thursday night.
According to a report published by the Times of London, former Brexit Secretary David Davis would like to be the acting leader in a potential challenge to May's leadership, despite the anger of some conservative MPs at the prospect of An extension.
Elsewhere, the New Zealand dollar
NZDUSD, + 0.7182%
was one of the biggest winners in developed market currencies, with 0.6593 USD, against 0.6544 USD Thursday in New York, despite the absence of headlines.
"On the contrary, New Zealand has negative news about the fact that immigration has continued to fall in September to its lowest level in four years," said Marshall Gittler, chief strategist for the United States. ACLS Global. "It hit the New Zealand dollar, but only temporarily. It appears that investors continue to reduce their short positions. "
Do you want to receive news from Europe in your inbox? Subscribe to MarketWatch's free Europe Daily newsletter. Register here.
