Get 40% Off
🤯 This Tech Portfolio is up 29% YTD! Join Now to Get April’s Top PicksGet The Picks – Just 99 USD

European stocks edge higher; Chinese growth target, Eurozone retail sales in focus

Published 2023-03-06, 03:52 a/m
Updated 2023-03-06, 03:52 a/m
© Reuters

© Reuters

By Peter Nurse 

Investing.com - European stock markets edged higher Monday, but gains were tepid as investors digested China setting a modest growth target for economic growth this year ahead of the release of Eurozone retail sales data. 

At 03:40 ET (08:40 GMT), the DAX index in Germany traded 0.3% higher, the CAC 40 in France climbed 0.5%, while the FTSE 100 in the U.K. traded largely flat.

European equities kicked off the new week in a hesitant fashion after Chinese government officials set a 5% economic growth target for 2023 over the weekend, at the start of the annual session of the National People's Congress.

The Chinese economy, a significant export market for European companies, grew just 3% last year, one of the slowest rates of growth in almost half a century as the economy was hamstrung by severe COVID-19 restrictions.

However, recent data showed that Chinese business activity rebounded sharply in February after the relaxing of the anti-COVID restrictions, and expectations were for a more substantial 2023 growth target.

Back in Europe, the main economic release Monday is the January retail sales figure for the Eurozone. This is expected to show growth of 1.0% on the month, a recovery from the fall of 2.7% the prior month.

This still represents an annual fall of 1.8%, a minor improvement from the 2.8% year-on-year drop in December, as high prices impact discretionary spending by consumers. 

Also of interest will be Federal Reserve Chair Jerome Powell's two-day testimony before the U.S. Congress, on Tuesday and Wednesday, ahead of Friday’s jobs report for February that could dictate sentiment ahead of the U.S. central bank’s policy-setting meeting later this month.

In the corporate sector, Telecom Italia (BIT:TLIT) stock rose 3.8% after the Italian state investor CDP bid for the fixed-line network of the former phone monopoly over the weekend, creating a potential bidding war with U.S. investment firm KKR (NYSE:KKR).

Credit Suisse (SIX:CSGN) stock fell 1.3% after the troubled bank lost one of its top backers with Harris Associates confirming it has sold its stake in the Swiss lender over the past few months.

Oil prices retreated Monday after China set a lower-than-expected target for economic growth this year, disappointing traders who were banking on strong growth from the largest crude importer in the world to boost crude demand.

By 03:40 ET, U.S. crude futures traded 0.2% lower at $79.52 a barrel, while the Brent contract fell 0.2% to $85.62. 

Additionally, gold futures rose 0.3% to $1,859.15/oz, while EUR/USD traded 0.2% higher at 1.0650.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.