Global stock markets rose as investors responded favorably to China’s plans to boost consumer spending. Key U.S. indices followed suit with slight gains driven by better-than-expected retail sales. Cautious optimism remains amid concerns of trade wars and upcoming central bank policies, particularly from the Fed, Bank of Japan, and Bank of England.
Global stock markets opened positively on Monday, buoyed by China’s plans to stimulate consumer spending in its economy. Investors’ attention also shifted towards upcoming central bank rate decisions. Major U.S. stock indexes saw gains for a second consecutive session, influenced by February retail sales data which, although modest at 0.2 percent increase, outperformed January’s decline of 1.2 percent.
Art Hogan from B. Riley Wealth Management noted, “We’ve priced in a lot of the concerns on the trade war,” reflecting investors’ optimistic sentiment. Chinese officials are expected to reveal strategies to enhance consumption after years of economic stagnation post-COVID, targeting reforms in property, stock market stability, and improved access to consumer loans.
According to Susannah Streeter of Hargreaves Lansdown, “Hopes that a new consumer life raft in China will buoy up the country’s prospects of recovery have helped lift sentiment slightly, but caution remains.” The proposals also encompass raising pension benefits and innovative childcare systems, as consumer prices showed their first decline into deflation in a year.
Asian markets performed strongly, with Hong Kong continuing to thrive amid interest in technology stocks, while European markets such as London, Paris, and Frankfurt also advanced, synchronized with gains in Asia. However, there is underlying concern regarding potential stagflation resulting from U.S. trade wars led by President Trump.
This week, critical economic events include anticipated interest rate decisions from the U.S. Federal Reserve, Bank of Japan, and Bank of England, all expected to hold rates steady. The Fed will also provide insights into economic projections amid concerns about inflation from tariff policies. Gold prices surged past the $3,000 per ounce mark, driven by increased demand for safe-haven assets as apprehensions grow over trade tensions.
Fawad Razaqzada from City Index remarked, “A faltering US dollar and heightened risk aversion, courtesy of Trump’s latest trade brinkmanship, continue to drive demand.” Current market figures underscore these developments, with substantial increases across major indices including New York’s Dow, S&P 500, and Nasdaq.
In summary, the outlook for stock markets is positively influenced by China’s consumer stimulus plans and recent retail sales data. Investor sentiment is buoyed by hopes for economic recovery, albeit with lingering caution over trade tensions and potential stagflation. Central banks’ decisions this week will further shape market responses, while safe havens like gold gain traction amid ongoing economic uncertainty.
Original Source: www.news-graphic.com
