GLOBAL stocks were mixed yestersay ahead of key Federal Reserve congressional testimony as China set a lower-than-expected target for 2023 economic growth.

Wall Street looked poised early yesterday to extend the rally from late last week, but momentum faded later in the day. Major US indices finished near flat.

The movements come as Fed chair Jerome Powell is set for two days of testimony before Congress, today and tomorrow, where he will be pressed about the central bank’s efforts to counter inflation.

This would provide hints on what policymakers are thinking about price pressures, influencing the market’s movements.

“I really think it’s just position-squaring ahead of Powell’s testimony,” said Karl Haeling of LBBW.

But much of the key data that will inform the Fed’s next meeting will come after the hearings, including Friday’s government jobs report for February.

Earlier, London stocks finished the day down 0.2%. Frankfurt stocks rose 0.5% and Paris added 0.3%. 

China’s outgoing Premier Li Keqiang on Sunday said the country’s economy would expand “around five%” this year, slightly below what analysts had predicted.

The world’s second-largest economy grew 3% last year, missing its target of around 5.5% 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 targets in many years, hinting to investors that the big reopening boom may not be as positive for the global economy as hoped,” said 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,” he said.

While markets were surprised by the Chinese announcement, Oanda analyst Craig Erlam said the lack of considerable stimulus to boost 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.

Oil prices rebounded after having earlier fallen on expectations that Chinese demand would not be as strong as forecast.

Key figures around 2130 GMT

New York - Dow: UP 0.1% at 33,431.44 (close)

New York - S&P 500: UP 0.1% at 4,048.42 (close)

New York - Nasdaq: DOWN 0.1% at 11,675.74 (close)

London - FTSE 100: DOWN 0.2% at 7,929.79 (close) 

Frankfurt - DAX: UP 0.5% at 15,653.58 (close)

Paris - CAC 40: UP 0.3% at 7,373.21 (close)

EURO STOXX 50: UP 0.4% at 4,313.78 (close)

Hong Kong - Hang Seng Index: UP 0.2% at 20,603.19 (close)

Tokyo - Nikkei 225: UP 1.1% at 28,237.78 (close) 

Shanghai - Composite: DOWN 0.2% at 3,322.03 (close)

Euro/dollar: UP at US$1.0684 from US$1.0635 Friday

Pound/dollar: DOWN at US$1.2023 from US$1.2036

Euro/pound: UP at 88.84 pence from 88.36 pence

Dollar/yen: UP at  ¥135.95 from  ¥135.87 

West Texas Intermediate: UP 1.0% at US$80.46 per barrel

Brent North Sea crude: UP 0.4% at US$86.18 per barrel – AFP, March 7, 2023.