Stocks largely gain as rate hike hopes offset muted China outlook

Sawt Falasteen - Stocks largely gain as rate hike hopes offset muted China outlook

Stocks largely gain as rate hike hopes offset muted China outlook / Photo: STR - AFP

The Paris CAC 40 went back above 7,400 points, having breached the level for the first time last month. That came amid a record-high for London's FTSE 100 also in February as investors bet on the eurozone and Britain swerving recession this year.

However, lingering fears about high interest rates aimed at cooling elevated inflation have dampened equities in recent sessions.

Federal Reserve Chair Jerome Powell is set to discuss monetary policy before the House and Senate committees on Tuesday, proceedings that will be scrutinised by investors seeking rate outlook clues.

That comes ahead of US payroll data on Friday and the Bank of Japan's two-day policy meeting from Thursday, which will be the last for governor Haruhiko Kuroda.

China's outgoing Premier Li Keqiang on Sunday said the country's economy would expand "around five percent" this year, slightly below what analysts had predicted.

The world's second-largest economy grew three percent last year, missing its target of around 5.5 percent under the impact of strict Covid-19 containment policies and a property crisis.

China lifted its pandemic restrictions in December.

"China set itself one of the lowest gross domestic product target in many years, hinting to investors that the big reopening boom may not be as positive for the global economy as hoped," noted Neil Wilson, chief market analyst at Finalto trading group.

"Oil and other industrial commodities slipped on the news, whilst basic resources stocks in London were hit, dragging the FTSE 100 marginally into the red."

Oil prices slid on expectations Chinese demand wouldn't be as strong as forecast, while the dollar largely steadied against main rivals.

Wall Street had posted its strongest session in more than a month on Friday. It came as a slide in US Treasury bond yields fortified beliefs the Fed was nearing the end of its rate-hiking cycle.

- Key figures around 1200 GMT -

London - FTSE 100: DOWN 0.6 percent at 7,903.52 points

Frankfurt - DAX: UP 0.1 percent at 15,589.94

Paris - CAC 40: UP 0.1 percent at 7,352.00

EURO STOXX 50: FLAT at 4,296.33

Hong Kong - Hang Seng Index: UP 0.2 percent at 20,603.19 (close)

Tokyo - Nikkei 225: UP 1.1 percent at 28,237.78 (close)

Shanghai - Composite: DOWN 0.2 percent at 3322.03 (close)

New York - Dow: UP 1.2 percent at 33,390.97 (close)

Euro/dollar: UP at $1.0642 from $1.0635 Friday

Pound/dollar: DOWN at $1.1998 from $1.2046

Euro/pound: UP at 88.68 pence from 88.32 pence

Dollar/yen: UP at 136.12 yen from 135.83 yen

West Texas Intermediate: DOWN 1.5 percent at $78.46 per barrel

Brent North Sea crude: DOWN 1.5 percent at $84.54 per barrel

M.AbuKhalil--SF-PST

RBGPF	-1.15%	68.56	$
RYCEF	-1.61%	20.5	$
CMSC	-0.38%	21.28	$
NGG	-0.05%	80.62	$
VOD	-1%	16.01	$
GSK	-1.77%	51.96	$
BTI	1.27%	56.7	$
BCE	0.34%	23.78	$
RIO	1.69%	102.17	$
AZN	-0.28%	164.49	$
RELX	0.79%	35.38	$
BCC	-1.66%	81.77	$
JRI	0.24%	12.41	$
CMSD	-0.14%	21.12	$
BP	3.12%	45.14	$

Sawt Falasteen - Stocks largely gain as rate hike hopes offset muted China outlook

Stocks largely gain as rate hike hopes offset muted China outlook

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