Reassuring Chinese GDP data helped stocks, commodity markets and the dollar consolidate strong weekly gains yesterday, as the focus turned to a meeting of top oil producers about a potential output freeze.

Moves in most markets were small in Europe but urges to lock in some profit was beginning to kick in after a 2.5 per cent weekly rally in world shares, a strong run by the dollar and an 11 percent surge in oil prices this month.

European shares edged down 0.4 per cent as traders top-sliced some the 3.5 per cent gains they have made this week with Wall Street’s main markets expected to drop slightly from four-month highs when they reopen later.

The dollar had eased off the pedal too, having made more than one per cent against both the yen and the euro this week, something of a turnaround after a weak start to the year.

Traders were waiting for IMF and G20 meetings in Washington later for signs from financial leaders on the next stages of their efforts to drag most of the developed world out of a debilitating cycle of debt and very low inflation.

Speculation was also still circling about whether top oil producers led by Saudi Arabia and Russia will be able to hammer a deal in Doha, Qatar tomorrow to curb output which is currently churning out around two million barrels of excess oil a day.

“This week we had some interesting movements especially in euro/dollar and dollar/yen and a widespread rebound in market sentiment,” said Rabobank economist Philip Marey, adding that Thursday’s surprise move by Singapore’s central bank to ease policy had fuelled hopes of another round of global stimulus.

Data from China overnight had drawn approval as it showed the country’s giant economy grew at 6.7 per cent in the first quarter year-on-year, bolstering hopes its slowdown may be bottoming out.

The major currencies seen as most dependent on China were the main gainers. The Australian and New Zealand dollars rose 0.3 and 0.9 per cent respectively, also helped by sizable week’s gains in key metals like copper.

In a sign of re-emerging risk appetite, the Baltic Dry index which reflects global shipping and trade and seen as somewhat of a bellwether of the global economy, was on course for a ninth straight weekly rise, its best run since 2003.

“Chinese economic data is showing signs of stabilisation, including recent PMI numbers, as well as the latest figures on industrial production and retail sales,” said Suan Teck Kin, economist at the United Overseas Bank in Singapore.