Stock market today: World markets are lower after China unveils 5% economic growth target for 2024
Shares are mostly lower in Europe and Asia following a decline on Wall Street
BEIJING — Shares were mostly lower in Europe and Asia on Tuesday following a decline on Wall Street. U.S. futures and oil prices also fell.
Germany's DAX lost 0.3% to 17,670.90 and the CAC 40 in Paris was also 0.3% lower, at 7,936.95. Britain's FTSE 100 likewise fell 0.3%, to 7,615.23.
The future for the S&P 500 was down 0.4% and that for the Dow Jones Industrial Average fell 0.2%.
Hong Kong’s benchmark sank 2.6% after China’s premier said the country’s target for economic growth this year is around 5%, in line with expectations. China’s economy expanded at a 5.2% annual rate last year after growth dipped to 3% in 2022.
Li Qiang, addressing the opening meeting of China's National People's Congress, also said Beijing would issue 1 trillion yuan ($139 billion) in long-term bonds to help bridge funding gaps, provide support to financially strapped local governments and invest in both advanced technology and in social support and education.
He said China would expand government-subsidized housing, part of a program aimed at reversing a downturn in the property market after a crackdown on excess borrowing caused dozens of developers to default on their debts.
But the government's intention to keep its deficit at 3% of China's GDP disappointed investors hoping for more aggressive action, Stephen Innes of SPI Asset Management said in a commentary.
“The unchanged target of 3% fell below expectations and signaled a cautious approach to fiscal policy,” he said.
The congress is the year's biggest political event, though it mainly just endorses policies set by top leaders of the ruling Communist Party.
The initial reaction to Li's address and the
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