Morning Bid: Europe, China shine as US exceptionalism fades

A look astatine the time up successful European and planetary markets from Rae Wee

Market question connected Monday continued the communicative of investors falling retired of emotion with U.S. stocks and flocking to European and Chinese peers instead.

Wall Street futures sullied a partition of summation aboriginal successful the day, failing to prolong past week's dip-buying rally that boosted each 3 large U.S. banal indexes.

Monday's dismal reversal of fortunes for U.S. stocks could stem from U.S. Treasury Secretary Scott Bessent commenting connected Sunday astir determination being "no guarantees" that the world's largest system volition debar recession, conscionable a week aft U.S. President Donald Trump declined to regularisation 1 out.

Investors person sought refuge from the tumultuous U.S. banal marketplace by pouring into a benignant of exchange-traded money that offers a trade-off - a headdress connected imaginable summation successful instrumentality for a cushion against imaginable loss.

But crossed the Atlantic, a antithetic communicative is playing out.

Investors optimistic astir Germany's fiscal reset program person poured wealth into European stocks, sending the pan-continental STOXX 600 up much than 7% for the twelvemonth truthful far.

Germany's DAX has likewise gained much than 15% to date, compared with the S&P 500 index's 4% fall.

European banal futures again pointed to a beardown opening connected Monday, with EUROSTOXX 50 futures up 0.17% and DAX futures gaining 0.35%.

Germany's parliamentary fund committee connected Sunday approved plans for the monolithic summation successful authorities borrowing to bolster defence and revive economical growth.

The bill, which includes a 500 cardinal euro ($540 billion) money for infrastructure and changes to borrowing rules, volition necessitate a two-thirds bulk successful a parliamentary ballot scheduled for Tuesday.

Similarly for China, erstwhile beaten-down stocks person emerged arsenic improbable beneficiaries of Trump's whipsawing tariff policies.

Coupled with a large rally successful tech shares pursuing Chinese AI startup DeepSeek's splashy debut of its R1 reasoning model, Hong Kong's Hang Seng Index - wherever galore large Chinese companies are listed - is up astir 20% truthful acold this year.

The concern successful China is besides improving.

Official information connected Monday showed retail income maturation quickened successful January-February, successful a invited motion for policymakers adjacent arsenic joblessness roseate and mill output eased.

A time earlier, the State Council unveiled what it called a "special enactment plan" to boost home consumption, featuring measures including expanding residents' income and establishing a childcare subsidy scheme.

That successful crook came days aft the fiscal regulator promised to unbend user recognition quotas and indebtedness presumption arsenic it offers semipermanent backing to marque disposable ample sums.