Shares Mixed Following China Growth Data

Distressed Patriotic Flag Unisex T-Shirt - Celebrate Comfort and Country $11.29 USD Get it here>>

TOKYO—Global shares were mixed Tuesday as pessimism over economic and political uncertainties remained even as China reported better-than-expected growth data.

France’s CAC 40 added 0.3 percent in early trading to 7,517.90. Germany’s DAX rose nearly 0.1 percent to 15,804.68. Britain’s FTSE 100 added 0.2 percent to 7,897.45. U.S. shares were set to drift higher with Dow futures up almost 0.1 percent at 34,160.00. S&P 500 futures rose 0.1 percent to 4,181.75.

Japan’s benchmark Nikkei 225 rose 0.5 percent to finish at 28,658.83. Australia’s S&P/ASX 200 shed 0.3 percent to 7,360.20. South Korea’s Kospi lost 0.2 percent to 2,571.09. Hong Kong’s Hang Seng slipped 0.6 percent to 20,650.51, while the Shanghai Composite rose 0.2 percent to 3,393.33. Oil prices fell.

Traders have been focused on data out of China, and trading was muted until the release of its gross domestic product figures. China’s 2023 growth target is 5 percent.

China’s first-quarter GDP, which measures the value of a nation’s products and services, rose 4.5 percent, according to statistics. Analysts had expected 4 percent growth following 2.9 percent growth in the last quarter of 2022. Still, some analysts remained cautious.

“This neither distracts from doubts around sustained growth recovery back above 5 percent nor does it adequately confirm recovery in private sector confidence critical to inspire a virtuous growth cycle,” said Tan Boon Heng at Mizuho Bank.

Analysts say new trade patterns will emerge since markets have been rocked by various political uncertainties such as the war in Ukraine, threatening supply chains and triggering fluctuations in consumer prices and moves by the world’s central banks.

“That period of relative stability may now be giving way to one of lasting instability resulting in lower growth, higher costs and more uncertain trade partnerships. Instead of more elastic global supply, we could face the risk of repeated supply shocks,” Michael Every, global strategist at Rabobank, said in a market commentary.

Much focus has been on the strength of the financial industry after the second- and third-largest U.S. bank failures in history last month rocked markets worldwide.

A worry for the broad financial industry has been that customers could pull out deposits amid the fear about the U.S. banking system. The spotlight has been greatest on regional banks that are a rung or several below the size of JPMorgan Chase and other massive “too-big-to-fail” banks. They’re seen as more vulnerable to customers fleeing en masse, akin to the runs that helped cause the failures of Silicon Valley Bank and Signature Bank last month.

Several regional banks will report their results later this week. So far, the earliest trends for earnings season seem to be encouraging.

Even though inflation has been cooling, it still remains far above the Fed’s liking.

In energy trading, benchmark U.S. crude fell 18 cents to $80.65 a barrel. Brent crude, the international standard, dipped 17 cents to $84.59 a barrel.

In currency trading, the U.S. dollar inched down to 134.28 yen from 134.42 yen. The euro cost $1.0974, up from $1.0930.

Source link


I'm TruthUSA, the author behind TruthUSA News Hub located at With our One Story at a Time," my aim is to provide you with unbiased and comprehensive news coverage. I dive deep into the latest happenings in the US and global events, and bring you objective stories sourced from reputable sources. My goal is to keep you informed and enlightened, ensuring you have access to the truth. Stay tuned to TruthUSA News Hub to discover the reality behind the headlines and gain a well-rounded perspective on the world.

Leave a Reply

This site uses Akismet to reduce spam. Learn how your comment data is processed.