Morning Bid: China's economy gathers pace but markets unimpressed

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Morning Bid: China's economy gathers pace but markets unimpressed
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A look at the day ahead in markets from Kevin Buckland.

The German share price index DAX graph is pictured after Switzerland’s UBS has agreed to buy rival Credit Suisse in a merger engineered by Swiss authorities, at the stock exchange in Frankfurt, Germany, March 20, 2023. REUTERS/Staff/File PhotoChina's post-Covid recovery is firmly on track, according to aon Tuesday. The economy expanded 4.5% in the first quarter year-on-year, accelerating from the previous 2.9% reading and handily outstripping forecasts for 4% growth.

Asia stocks were mostly weaker on Tuesday, with investors possibly fretting about the implications of further Fed tightening after strong manufacturing data boosted bets for a hike in May. JPMorgan, Citigroup and Wells Fargo have all beaten Wall Street forecasts but State Street tumbled more than 9% overnight after fee income fell.

The European stock open will be watched closely after the week started with a pullback from one-year highs, ending a five-day winning run.

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