Global stock markets began the week on a positive note, driven by China’s plans to stimulate consumer spending amid upcoming central bank rate decisions. Wall Street indices continued to rise following modest US retail sales data, despite lingering concerns regarding trade wars and potential stagflation. Major indices and commodities showed gains, reflecting cautious optimism and significant focus on economic projections from central banks.

Global stock markets commenced the week positively as investors responded favorably to China’s initiatives aimed at stimulating consumption within the nation. Central bank rate decisions remained a significant focus. Major indices on Wall Street advanced for the second consecutive session, buoyed by a slight 0.2 percent rise in US retail sales for February, a notable improvement compared to January’s 1.2 percent decline.

Market momentum persisted as concerns surrounding trade wars have largely been absorbed, according to Art Hogan, a representative from B. Riley Wealth Management. Investors remained vigilant as Chinese officials prepared to unveil strategies to enhance consumer spending, which has suffered due to prolonged post-Covid weaknesses, contributing to slow economic growth.

Planned reforms in China aim to increase consumer income through property policy changes, stabilize stock market conditions, and incentivize lenders to offer more reasonable consumption loans. Susannah Streeter, head of money and markets at Hargreaves Lansdown, conveyed cautious optimism, stating, “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.”

Proposals also include raising pension benefits, developing a childcare subsidy system, and fortifying workers’ rights regarding rest and holidays. These efforts follow a report indicating a drop into consumer price deflation for the first time in a year in February, alongside declining producer prices.

Asian markets reflected robust performance with Hong Kong seeing a surge due to investments in Chinese tech giants. European markets such as London, Paris, and Frankfurt followed suit, benefiting from Asian advancements. However, concerns persist over potential stagflation linked to US President Donald Trump’s trade policies.

The week is highlighted by anticipated policy decisions from the US Federal Reserve, the Bank of Japan, and the Bank of England, with expectations that interest rates will remain steady. The Fed’s announcements will coincide with economic projection summaries amid the complexities arising from tariffs imposed by the Trump administration.

Gold prices approached the $3,000 per ounce mark, having surpassed it previously, due to increased interest in safe havens resulting from trade uncertainties. Fawad Razaqzada, an analyst from City Index and FOREX.com, noted that “a faltering US dollar and heightened risk aversion, courtesy of Trump’s latest trade brinkmanship, continue to drive demand.”

Key market indicators included notable increases across various stock exchanges, such as New York’s Dow up by 0.9 percent, along with gains noted in the FTSE 100, CAC 40, and others. Exchange rates showed a marginal rise in the euro and pound against the dollar, while oil prices also saw slight increases.

In summary, global stock markets experienced gains primarily attributed to anticipated Chinese economic reforms aimed at boosting consumer spending and improving growth prospects. Despite positive momentum, cautious sentiment persists due to ongoing trade policy uncertainties and the potential for stagflation in the US. Key interest rate decisions from major central banks later in the week will provide further insight into economic conditions. Investors remain attentive as they navigate these developments in the financial landscape.

Original Source: www.news-graphic.com

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