London pre-open: Chinese data to cap gains at start of trading

8th Sep 2015 07:10

(ShareCast News) - The top flight index is being called to start the day slightly higher despite the release of Chinese trade figures for August that left analysts divided.China's international trade performance in August was weaker than expected, although some economists struck an upbeat note.The country's exports shrank by 9.6% in year-on-year terms, following a decrease of 8.3% in the month before (consensus: -6.6%).Purchases from abroad were much weaker than forecast, with imports decreasing at a 17.3% year-on-year clip after a fall of 8.1% in July (consensus: -7.9%)."We think the apparent weakness is misleading," analysts at Capital Economics said in a research note e-mailed to clients.They referenced negative 'base effects' when comparing with last year's figures to back up their case.Upon seasonal adjustment the figures also looked "less alarming" and were still consistent with a partial recovery in both exports and imports since the start of the year, they said.Craig Erlam, senior market analyst at Oanda, was more circumspect, telling clients that," [the data] clearly shows that the country is having difficulties in its attempts to transition from an export-driven economy to a consumer-driven one. The consumer just isn't filling the void which is going to result in slower growth and challenging conditions for the government and central bank."As of 0706 BST the Shanghai Stock Exchange's Composite Index was dipping 0.27% to 3,072.1.Ashmore posts 21% drop in full-year AuM Total sales grew by 11.1% at Costa coffee shops owner Whitbread in the second quarter as like for like sales advanced 3.3%. The FTSE 100 group said in order to cope with the recently announced National Living Wage it aimed to increase efficiencies and make some selective price increases.Ashmore posted a 21% drop in assets under management in the year to end of June, but profit and revenue increased and the company said fundamentals across emerging markets remain sound. AUM fell to $58.9bn from $75bn last year, while pre-tax profit rose 6% to £181.3m and net revenue were up 8% at 283.3m.