Global Markets Await China's Fiscal Move Amid U.S. Policy Shifts

Global stocks remained stagnant as investors awaited Beijing's upcoming fiscal stimulus update, with the European market steady and Wall Street futures flat. A recent U.S. rate cut eased recession fears, setting the stage for potential Chinese monetary support. However, sticky U.S. inflation poses interest rate challenges.

Global stocks experienced minimal movement on Friday. Market participants seem wary to place further bets ahead of a significant fiscal stimulus announcement expected from Beijing this weekend, halting a rally in Chinese shares. Europe's markets stayed stable, with Wall Street futures also exhibiting little change.

The Federal Reserve's recent rate cut, intended to stave off U.S. recession concerns, eased market jitters and allowed China leeway for monetary measures without pressuring the renminbi. Ting Lu, Nomura's chief China economist, noted the intense market focus on potential fiscal actions from Beijing.

U.S. economic indicators show core consumer prices rising unexpectedly, casting doubt on the aggressiveness of the Fed's rate cut as inflation pressures build. Amid these developments, the U.S. dollar climbed, reflecting changing trader expectations. In energy markets, Brent crude oil prices reacted to regional risks and rising fuel demands.

(With inputs from agencies.)