European Stocks Advance
European stocks rose on Monday as investors assessed the latest economic data from China and the potential for a rise in interest rates. The Stoxx Europe 600 Index gained 0.6%, while the U.K.’s FTSE 100 Index rose 0.7%. Germany’s DAX Index rose 0.8%, while France’s CAC 40 Index rose 0.7%.
China Data
China’s economy grew at its fastest pace in nearly three decades in the first quarter of 2023, with gross domestic product expanding by 18.3% from a year earlier. The strong growth was driven by a surge in investment and consumer spending, as well as government stimulus measures.
The data was seen as a sign of the country’s recovery from the coronavirus pandemic, which has weighed heavily on the global economy.
Interest Rates
Investors were also keeping an eye on the potential for a rise in interest rates. The European Central Bank is expected to raise rates in the coming months, as the economy continues to recover from the pandemic.
The ECB is expected to announce its decision on interest rates later this month. Analysts expect the central bank to raise rates by 0.25%, which would be the first rate hike since 2011.
U.S. Markets
In the U.S., stocks were mixed, with the Dow Jones Industrial Average down 0.2%, while the S&P 500 Index was up 0.2%. The Nasdaq Composite Index was up 0.4%.
Commodities
In commodities, oil prices rose, with Brent crude up 0.7% to $68.17 a barrel. Gold prices were also higher, up 0.3% to $1,873.90 an ounce.
Currency Markets
In currency markets, the euro was up 0.2% against the dollar, while the pound was up 0.3%. The yen was up 0.2% against the dollar.
Outlook
Looking ahead, investors will be keeping an eye on the latest economic data from the U.S. and Europe, as well as any further developments in the U.S.-China trade talks.
The global economy is expected to continue to recover in the coming months, as the rollout of vaccines accelerates and governments continue to provide stimulus measures.
However, there are still risks to the outlook, including the potential for a rise in inflation and the possibility of further restrictions on economic activity.
Overall, investors remain cautiously optimistic about the outlook for the global economy, with many expecting a strong recovery in the coming months.