PARIS - Major stock markets mostly rose Monday, with Paris briefly reaching a fresh record, as traders reacted to indications the Federal Reserve could soon end a policy of hiking interest rates.
The Paris CAC 40 went back above 7,400 points, having breached the level for the first time last month. That came amid a record-high for London's FTSE 100 also in February as investors bet on the eurozone and Britain swerving recession this year.
However, lingering fears about high interest rates aimed at cooling elevated inflation have dampened equities in recent sessions.
Federal Reserve Chair Jerome Powell is set to discuss monetary policy before the House and Senate committees on Tuesday, proceedings that will be scrutinised by investors seeking rate outlook clues.
That comes ahead of US payroll data on Friday and the Bank of Japan's two-day policy meeting from Thursday, which will be the last for governor Haruhiko Kuroda.
China's outgoing Premier Li Keqiang on Sunday said the country's economy would expand "around five percent" this year, slightly below what analysts had predicted.
The world's second-largest economy grew three percent last year, missing its target of around 5.5 percent under the impact of strict Covid-19 containment policies and a property crisis.
China lifted its pandemic restrictions in December.
"China set itself one of the lowest gross domestic product target in many years, hinting to investors that the big reopening boom may not be as positive for the global economy as hoped," noted Neil Wilson, chief market analyst at Finalto trading group.
"Oil and other industrial commodities slipped on the news, whilst basic resources stocks in London were hit, dragging the FTSE 100 marginally into the red."
London was down 0.4 percent in afternoon trading. Frankfurt stocks rose 0.5 percent and Paris 0.4 percent.
While markets were surprised by the Chinese announcement, OANDA analyst Craig Erlam said the lack of considerable stimulus to turbo-charge the economic recovery may be a blessing in disguise.
"One of the upside risks to inflation this year was a turbo-charged Chinese recovery which would drive up demand for a host of commodities from oil to iron ore and as a result prices," said Erlam.
"So while we may not get the growth boost, we're probably getting something far more valuable," he added.
Wall Street opened with modest gains after having posted on Friday its strongest session in more than a month as a drop in US Treasury bond yields fortified beliefs the Fed was nearing the end of its rate-hiking cycle.
US Treasury bond yield continue to fall on Monday.
"The stock market liked what it saw in the Treasury market on Friday and likes what it continues to see today," said market analyst Patrick O'Hare.
Oil prices slid on expectations Chinese demand wouldn't be as strong as forecast, while the dollar dipped against its main rivals.