New York (AFP) - Strong Chinese economic growth boosted markets in Asia and Europe on Tuesday, but Wall Street stocks finished essentially flat following mixed banking earnings.
The blockbuster 4.5 percent expansion reported by China, helped by above-forecast retail sales last month, revived optimism for a recovery in the world's second-biggest economy after its worst performance in decades last year.
The first-quarter figures are the first snapshot since 2019 of a Chinese economy unencumbered by Covid health restrictions that included city-wide lockdowns lasting months.
But below-forecast readings on Chinese industrial output and fixed-asset investment suggested weaknesses remained, and points to an uneven recovery.
"We expect to see higher GDP growth rate in upcoming quarters as a result of the low base from last year, and the annual growth target of five percent should be achievable," said Chaoping Zhu, a strategist at JP Morgan Asset Management, referring to officials' goal.
"That said, some challenges still exist in the economy," he said.
The Chinese economy remains beset by a series of problems including a debt-laden property sector, global inflation and the threat of recession elsewhere.
"It's not just the pandemic that the country is bouncing back from, confidence in the property market has been severely undermined and it will take time to recover," said Craig Erlam, senior analyst at the OANDA trading group.
Focus on earnings
Wall Street stocks finished little changed Tuesday following a day that saw no major swings.
Bank of America climbed 0.6 percent after reporting higher profits thanks to a boost from higher interest rates, while Goldman Sachs dropped 1.7 percent following results that were hit by a slowdown in corporate mergers.
"A tale of two very different banking giants has unfolded as Goldman Sachs was hit by a dent in dealmaking, while the good times rolled for Bank of America, which reaped big windfalls from higher interest rates," said Susannah Streeter, head of money and markets at Hargreaves Lansdown brokerage.
But the underlying story betrays "trickier times ahead for both banks," she warned, with market volatility and pressure on interest rate margins expected to make it tough going for lenders.
Investors were also keeping an eye on the results of regional US banks after three collapsed last month as lenders face pressure from rising interest rates.
Key figures around 1530 GMT
New York - Dow: FLAT at 33,976.63 (close)
New York - S&P 500: UP 0.1 percent at 4,154.87 (close)
New York - Nasdaq: FLAT at 12,153.41 (close)
London - FTSE 100: UP 0.4 percent at 7,909.44 (close)
Frankfurt - DAX: UP 0.6 percent at 15,882.67 (close)
Paris - CAC 40: UP 0.5 percent at 7,533.63 (close)
EURO STOXX 50: UP 0.6 percent at 4,393.95 (close)
Tokyo - Nikkei 225: UP 0.5 percent at 28,658.83 (close)
Hong Kong - Hang Seng Index: DOWN 0.6 percent at 20,650.51 (close)
Shanghai - Composite: UP 0.2 percent at 3,393.33 (close)
Euro/dollar: UP at $1.0975 from $1.0926 on Monday
Pound/dollar: UP at $1.2425 from $1.2376
Dollar/yen: DOWN at 134.10 yen from 134.47 yen
Euro/pound: DOWN at 88.26 pence from 88.28 pence
West Texas Intermediate: FLAT at $80.86 per barrel
Brent North Sea: FLAT at $84.77 per barrel
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