Global stock markets started the week on the front foot on Monday as investors welcomed China’s plans to kickstart consumption in the world’s number two economy, with upcoming central bank rate decisions also in focus

Global stock markets started the week on the front foot on Monday as investors welcomed China’s plans to kickstart consumption in the world’s number two economy, with upcoming central bank rate decisions also in focus. Relief about a US government shutdown being avoided helped counterbalance disappointing US economic data. Investors were keeping tabs on Beijing as officials were set to outline their plans to kickstart spending by the country’s army of consumers after years of post-Covid weakness, which has been a major drag on economic growth. The plan looks to boost income with property reforms, stabilize the stock market, and encourage lenders to provide more consumption loans with reasonable limits, terms, and interest rates.

According to Hargreaves Lansdown’s head of money and markets, Susannah Streeter, “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.” Officials were also looking at raising pension benefits, establishing a childcare subsidy system, and ensuring workers’ rights to rest and holidays are legally protected. The move comes after data showed that producer prices continued to fall while consumer prices fell for the first time in a year in February. “Consumer spending will remain weak as a result of tariff chaos, reducing demand drivers for inflation.” Hong Kong built on a blockbuster start to the year fuelled by a chase into Chinese tech giants, while Shanghai and Tokyo also enjoyed healthy buying.

Following Asian gains, London, Paris, and Frankfurt all advanced. Wall Street was mostly higher in early afternoon trading, shaking off data showing US retail sales logged smaller gains than expected in February, edging up by 0.2 percent compared to a 0.7 percent increase expected by Briefing.com. Despite the miss, Patrick O’Hare, an analyst at Briefing.com, pointed to a more positive reading of control group sales, which rose 1.0 percent when volatile elements are excluded. However, O’Hare stated that a key survey revealed a rise in business prices, which “plays into some of the stagflation worries that have infiltrated the market.” Investors are concerned that the tariff war could create the conditions for stagflation: high inflation, weak demand and high unemployment.

“The economy will be a focal point throughout the week” for investors, noted O’Hare. This week’s calendar includes policy decisions from the US Federal Reserve, the Bank of Japan, and the Bank of England — and all are expected to keep interest rates on hold. Alongside its rate decision, the Fed will release its summary of economic projections and outlook for borrowing costs this year, which comes as policymakers try to navigate the potential inflationary impacts of Trump’s tariffs campaign. Monday saw gold close to the $3,000 per ounce mark, having broken the symbolic threshold for the first time on Friday as traders worried about Trump’s tariffs and rushed into safe havens. According to City Index and FOREX.com analyst Fawad Razaqzada, “a faltering US dollar and heightened risk aversion, courtesy of Trump’s latest trade brinkmanship, continue to drive demand.” – Key figures around 1630 GMT –

New York – Dow: UP 0.5 percent at 41,679.25 points

New York – S&P 500: UP 0.1 percent at 5,644.55

The New York-Nasdaq Composite fell 0.5% to 17,673.19. London’s FTSE 100 was up 0.6% at 8,680.29 at the close. Paris – CAC 40: UP 0.6 percent at 8,073.98 (close)

Frankfurt – DAX: UP 0.7 percent at 23,154.57 (close)

Tokyo – Nikkei 225: UP 0.9 percent at 37,396.52 (close)

Hong Kong – Hang Seng Index: UP 0.8 percent at 24,145.57 (close)

Shanghai – Composite: UP 0.2 percent at 3,426.13 (close)

Euro/dollar: UP at $1.0921 from $1.0884 on Friday

Pound/dollar: UP at $1.2987 from $1.2936

Dollar to yen: 148.55 yen, down from 148.62 yen. Euro/pound: DOWN at 84.10 pence from 84.14 pence

Brent North Sea Crude: UP 0.7 percent at $71.09 per barrel

West Texas Intermediate: UP 0.7 percent at $67.63 per barrel