By ELAINE KURTENBACH, AP Business Writer
BANGKOK (AP) – Shares in Europe rose after a mixed session in Asia on Monday, as China reported a range of figures that painted a complex picture of the recovery from the epidemic.
The passage of a $ 1.9 trillion aid package to the US economy has increased investor confidence that the US and the global economy will experience a strong recovery from the pandemic in the second half of the year, but will likely also increase the rate of inflation.
Germany’s DAX climbed 0.3% to 14,546.95 and CAC 40 in Paris rose 0.5% to 6,075.54. The UK’s FTSE 100 was up 0.4% at 6,789.86. US Futures pointed to a spirited start with contracts of up to 0.3% for the S&P 500 and 0.4% higher for Dow industrialists.
Markets received a mixed message from China’s data that has led to global recovery, reopening earlier than other countries in the coronovirus shutdown that emerged in the central city of Wuhan in early 2020.
Retail sales grew nearly 36% year-over-year in January-February from a year earlier. ING economists said in a report that the increase was mostly driven by strong demand for cars, catering and jewelry, suggesting that Chinese consumers were isolated during the Lunar New Year.
He said the data was exaggerated due to the low base effect from the shutdown last year.
Analysts said the unemployment rate rose to 5.5% from 5.2% a year earlier, possibly influenced by a flare-up of coronoviruses in some regions.
Travel restrictions were weighed on retail sales but boosted industrial production and investment. We think activity will remain strong during the first half of this year, before giving way to a weak second half, ”Julian Evans-Pritchard of Capital Economics said in a comment.
“Domestic policy support is gradually being withdrawn. And foreign demand for Chinese goods will return as vaccines begin to reverse the recent shift in global consumption patterns.
The Shanghai Composite Index fell 1% to 3,419.95. Tokyo’s Nikkei 225 index rose 0.2% to 29,766.97 and Hang Seng in Hong Kong rose 0.3% to 28,833.76. In South Korea, Kospi lost 0.3% to 3,045.71. Sydney’s S&P / ASX 200 closed 0.1% higher at 6,773.00.
India’s Sensex fell 1.3% to 50,127.98.
Investors will be watching the results of the Federal Reserve policy meeting this week. Japan’s central bank will issue a policy update on Friday.
A late afternoon burst in purchases on Friday saw the S&P 500 rise 0.1% to 3,943.34, extending its winning streak to a fourth straight day. The Dow Jones Industrial Average added 0.9%, 32,778.64, raised by industrial stocks such as Boeing and Catriller. The tech-heavy Nasdaq fell 0.6% to 13,319.86.
The Russell 2000 index of small company stocks rose 0.6% to 2,352.79. This is up 7.3% over the week, with the S&P 500 advancing to a 2.6% gain week.
The bond market was again the dominant force in pulling down share stocks, as yields push interest rates higher, making expensive high-flying stocks expensive.
After remaining stable for most of the week, the yield on the 10-year Treasury note rose from 1.52% to 1.62% the day before. The shares were sold by investors at the end of last week, after which the yield rose to more than 1.60%. The 10-year Treasury was 1.61% on Monday.
Increase in Bond Yield President Joe Biden signed into law a $ 1.9 trillion stimulus plan that would include a $ 1,400 check for most Americans and additional payments with children or for those collecting unemployment benefits last year. President Biden prepared a plan in a primetime speech on Thursday to extend vaccine eligibility to all Americans by May 1.
Some economists fear that inflation, which has been dormant for the past decade, may lead to higher growth under additional demand generated by stimulant packages. Others disagree, noting that the US economy has 9.5 million fewer jobs, compared to a year before the pandemic. They say that unemployment will keep a lid on inflation.
Other trading On Monday, benchmark US crude oil rose 57 cents to $ 66.18 a barrel in electronic trading on the New York Mercant Exchange. On Friday, it was down 41 cents to $ 65.61 a barrel. International standard Brent crude, 57 cents added $ 69.79 per barrel.
The US dollar rose to 109.06 Japanese yen from 109.02 yen late on Friday night. The euro fell from $ 1.1949 to $ 1.1931.
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