European stocks gained even though eurozone industrial production data showed an unexpected one-month drop. "Despite June's unexpected weakness, industrial production in the second quarter overall was flat … thanks to an upward revision to April's data," Jessica Hinds, European economist at the Capital Economics research group, said.
That in turn pushed sterling lower against the euro and dollar. "A significant cut to the Bank of England's wage growth forecast saw sterling crash to a more than two month low against the US dollar, as traders took the revision to mean that the central bank won't hike rates this year, pushing back some forecasts to the start of 2015," Craig Erlam, market analyst at Alpari traders, said.
Japan's economy shrank by 1. 7 per cent in the April-June quarter, official figures showed, while in China industrial output and retail sales numbers came in slightly slower than the previous month's data.
Read more here: Business Spectator