Business Maverick: Stocks pare gains amid China data rate cut: markets wrap

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Investors on Monday evaluated a surprise interest-rate cut by China to shore up an economy struggling with a property-sector slowdown and Covid-linked restrictions.

Shares in China and Hong Kong declined, while Japan pushed higher, putting the Nikkei 225 on track to erase its 2022 loss. S&P 500 and Nasdaq 100 futures dipped, suggesting a pause in the global stock bounce from bear-market lows.

Data showed slower than expected industrial output and retail sales in the world’s second-largest economy as well as shrinking property investment. Equity markets in recent weeks have drawn succour from signs of slowing inflation, which stirred hopes of a shift by the Fed to less aggressive monetary tightening that can contain price pressures without triggering a recession. But China’s faltering recovery shows many hurdles still lie ahead for risk appetite.

 

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