Global stock indices edged higher after initial declines as China revised its 2019 growth target to a 30-year low while announcing additional economic stimulus. The move coincided with U.S. economic data boosting the dollar to a two-week peak.
Wall Street stocks showed mixed performance, with the S&P 500 index hovering near flat as traders awaited developments in U.S.-China trade negotiations. Positive earnings reports from Target Corp and improved data on the services and housing sectors provided limited support to equity markets.
The U.S. Commerce Department reported a seven-month high in new single-family home sales for December, while the Institute for Supply Management noted accelerated growth in the services sector during February. Despite these indicators, the S&P 500 remained constrained below the 2,800 threshold, though it had gained nearly 19% from its December low.
Quincy Krosby of Prudential Financial observed that market hesitation at key levels allowed for a more measured response to economic developments. 'It’s healthier to see the market slow down, pause, and absorb the good news,' she said, contrasting this with a potential deep sell-off.
European markets closed slightly higher amid uncertainty over China’s revised growth strategy, which included tax cuts and infrastructure investments. The Dow Jones fell 0.05%, the S&P 500 dropped 0.11%, and the Nasdaq declined 0.02% as investors weighed ongoing global economic pressures.
The dollar index rose 0.16% against major currencies, with the euro falling to $1.1306. Oil prices remained stable as traders awaited further clarity on U.S.-China trade talks and upcoming crude stock data.
