DAX, CAC, FTSE 100 – DAX Shows Resilience, but FTSE Weakens as Miners Tumble on China Growth News

The European stock markets were mixed on Monday, with equities in Germany and France posting modest gains while the UK was under pressure. The buying was tentative as investors digested a report on China’s growth goals, awaiting critical testimony from Fed Chairman Jerome Powell on Tuesday and Wednesday.

At 11:43 GMT, Germany’s Dax is trading at 15616.69, up 38.3, up 0.25%. France’s CAC 40 Index is at 7373.96, up 25.84 or +0.35%, and the UK’s FTSE 100 is trading at 7917.49, down 29.62 or -0.37%.

The markets were also underpinned by slightly higher U.S. stock futures prices, which inched up Monday morning as Wall Street looked ahead to a week filled with economic data and the latest remarks from the Federal Reserve.

UK’s FTSE 100 Kicks Off Week on Grim Note, Miners Fall

The UK’s blue-chip FTSE 100 inched lower on Monday as miners slumped, following top metals consumer China’s decision to set a modest growth target for the year, offsetting a solid performance by Ireland-based gaming company Flutter.

The export-oriented FTSE 100 fell 0.2%, and the more domestically-focused FTSE 250 was flat. The FTSE 250 industrial metals miners slid 2.4%.

European Mining Stocks Down 2.4% after China Growth Target

After announcing a modest Chinese growth target, mining stocks dropped 2.4% in morning trade, bucking the broadly positive trend across European markets.

According to a government report released Sunday, China set a growth expectation of “around 5%” for 2023, with the consumer price index aiming to grow by 3%.

The news prompted base metal prices to slide after hopes the industry would have a solid demand rebound in 2023 following China’s reopening. Iron ore, zinc, nickel, aluminum, and lead all lost momentum Monday morning, according to the London Metal Exchange.

Euro Zone Investor Morale Unexpectedly Falls in March, Retail Sales Smaller-than-Forecast

Euro area investor confidence decreased more than expected in March as expectations deteriorated sharply despite receding fears of a recession, survey results from the behavioral research institute Sentix showed Monday.

Euro Zone retail sales rebounded much less than expected month-on-month in January and were still lower than 12 months earlier, underlining the weakness of consumer demand in the Euro Zone and the broader economic slowdown, data showed on Monday.

Major Shareholder Sells Its Credit Suisse Stake

Major Credit Suisse shareholder Harris Associates sold its stake in the Swiss Bank in recent months, as confirmed by Reuters.

The U.S. investment manager’s deputy chair and chief investment officer David Herro did not give a reason for selling the stake but previously expressed frustration with Credit Suisse’s performance.