Global stock markets opened on a high note, buoyed by China’s plans to stimulate consumer spending. Wall Street indices recorded gains, spurred by a slight increase in US retail sales. Investor optimism remains cautious amidst ongoing chatter about potential stagflation linked to US trade wars and major central bank interest rate announcements. The demand for safe-haven assets like gold continues to increase alongside shifts in currency values.
Global stock markets commenced the week positively as investors expressed optimism regarding China’s intentions to stimulate consumption within its economy. Wall Street indices experienced gains for the second consecutive session, bolstered by a 0.2 percent increase in US retail sales for February, despite it falling short of analysts’ expectations yet significantly improving from January’s 1.2 percent decline.
Art Hogan of B. Riley Wealth Management noted that substantial concerns surrounding trade wars have already been accounted for in the market. Investors are closely monitoring Beijing, where officials are poised to announce plans to invigorate consumer spending following extended periods of post-COVID economic stagnation.
The proposed strategies include enhancing income through property reforms, stabilizing the stock market, and promoting consumer loans with reasonable limits and conditions. According to Susannah Streeter of Hargreaves Lansdown, while optimism about China’s recovery efforts has lifted market sentiment, underlying caution persists.
Plans under consideration by Chinese officials also encompass raising pension benefits, establishing a childcare subsidy system, and legally safeguarding workers’ rights to rest and holidays. This initiative follows a recent report indicating a shift into deflation for consumer prices in February, coupled with a continuing decline in producer prices.
Asian markets, notably Hong Kong, Shanghai, and Tokyo, demonstrated strong performance, contributing to overall gains across European markets, including London, Paris, and Frankfurt. Despite the positive market trends, investor concerns linger regarding potential stagflation exacerbated by U.S. trade policies.
This week’s economic agenda features pivotal policy decisions from the US Federal Reserve, the Bank of Japan, and the Bank of England, all anticipated to maintain current interest rates. The Fed will provide its economic projections alongside its decision, amidst rising inflationary concerns linked to tariffs introduced by President Trump.
Gold prices hovered around $3,000 per ounce, reaching this milestone for the first time due to increased demand for safe-haven assets as a result of trade uncertainties. Analyst Fawad Razaqzada from City Index and FOREX.com attributes the heightened demand to a weakening US dollar coupled with concerns stemming from Trump’s trade strategies.
Key market indices closing data included the Dow up 0.9% at 41,841.63, S&P 500 up 0.6% at 5,675.12, and Nasdaq Composite up 0.3% at 17,808.66, among others. Currency movements indicated the Euro rising against the dollar while crude oil prices reflected modest gains.
In summary, global stock markets have experienced positive momentum driven by hopes of a Chinese consumption stimulus amidst ongoing concerns regarding trade policies and inflation. While investors remain optimistic about recovery, caution continues to be warranted as economic policies and market dynamics unfold. Key decisions from central banks this week will likely influence market trajectories and investor sentiment.
Original Source: www.news-graphic.com
