Australia

Shares in Australia are hinting lower today following weak sessions in Europe and the US. China’s unexpectedly modest growth target sent energy stocks in the red. Investors anxiously awaited remarks from Federal Reserve Chair Jerome Powell for insight on inflation.

ASX futures were pointing 13 points or 0.18% down as of 8:00am Tuesday, suggesting a decline at the open.

US stocks treaded water Monday, with investors awaiting Fed Chair Jerome Powell's congressional testimony on Tuesday and important labor market data at the end of the week.

The S&P 500 climbed less than 0.1% and the Dow Jones Industrial Average added 0.1%, or about 40 points. The Nasdaq Composite slipped 0.1%. Stocks opened the session modestly higher before paring their advance in afternoon trading.

All three major indices climbed last week, with the Dow Jones breaking a four-week losing streak. The indices, however, are still down from their recent highs in February, when a string of economic reports suggested that the economy is stronger, and inflation is hotter, than many investors had previously believed.

As a result of those reports, many investors are less confident now that the US will enter a recession this year. But they also have become more concerned that the Fed will leave interest rates higher for longer. That has hurt stocks by in part increasing the relative attractiveness of ultrasafe assets such as US Treasury bills.

It has also raised anxieties that a ramped-up effort by the Fed to bring down inflation might ultimately cause a more painful recession down the road, crimping corporate earnings when a downturn finally does arrive.

In commodity markets, Brent crude oil gained 0.6% to $US86.31 a barrel while gold lost 0.5% to US$1,847.07.

Australian government bond yields declined, with the 2 Year dipping to 3.50% and the 10 Year falling to 3.76%. Yields on US Treasury notes climbed, however, with the 2 Year hiking to 4.89% and the 10 Year up at 3.98%.

The Australian dollar edged down to 67.23 US cents from its previous close of 67.66. The Wall Street Journal Dollar Index, which tracks the US dollar against 16 other currencies, edged up to 97.53.

Asia

Chinese shares ended mixed as investors digested the country's conservative growth target of around 5%. Hopes for a large stimulus dampened while economic headwinds seemed likely. Shares of chip makers and pharma companies led the gains as Beijing vowed to strengthen domestic development of advanced technologies. TCL Zhonghuan Renewable closed 9.8% higher and Shanghai United Imaging gained 4.3%. Financial companies and property stocks extended their losses with Ping An Insurance (Group) falling 3.1% and China Vanke 2.1% lower. The benchmark Shanghai Composite Index closed 0.2% lower at 3322.03, the Shenzhen Composite Index was flat, and the ChiNext Price Index ended 0.4% higher.

Hong Kong stocks ended slightly higher, as trading momentum remained relatively muted after a strong rally last week. The benchmark Hang Seng Index edged 0.2% higher to settle at 20603.19. China's state-owned oil majors led gains as the demand outlook brightened. Top crude exporter Saudi Arabia raised prices for the crude product it sells to Asia in a sign of upbeat demand expectations from China. Sinopec and Cnooc advanced 3.45% each. Telecom carriers also supported the market, as officials continued to signal an emphasis on national digitization. China Mobile added 3.2% and China Telecom was 1.9% higher.

Japanese stocks ended higher, led by gains in electronics shares, as hopes grew for US economic strength and concerns about borrowing costs ebbed. Renesas Electronics gained 3.5% and Tokyo Electron climbed 3.1%. Hokuriku Electric Power jumped 9.4% on hopes for a nuclear reactor restart. The Nikkei Stock Average rose 1.1% to 28237.78.

Indian stocks ended higher, extending their recovery from a recent slump. The benchmark Sensex index rose 0.7% to settle at 60224.46. A range of sectors led the advance, with nearly all index constituents gaining ground. Tata Motors was the top performer with a 2.8% jump, while auto maker Maruti Suzuki inched 0.6% higher. Utilities companies further supported the market, as Power Grid Corp. of India added 2.25% and power producer NTPC gained 2.5%. IT-services provider Infosys and HCL Technologies rose 1.9% and 0.7%, respectively.

Europe

European stocks traded mixed on Monday. The pan-European Stoxx Europe 600 closed flat, the French CAC 40 rose 0.3% and the German DAX gained 0.5%.

"A recovery in US markets at the back end of last week helped create a slightly sunnier mood and dispel some of the clouds around US interest rates," AJ Bell investment director Russ Mould wrote. "But the market lacks an explicit steer on US rates until the Federal Reserve's next rate decision meeting concludes on [March] 22."

The United Kingdom’s FTSE 100 Index edged down 0.2%, or 17 points, as losses for miners offset modest gains for utilities, retailers and various other stocks. Anglo American, Rio Tinto, Antofagasta, BHP and Glencore were among the biggest losers following downbeat economic news from China. Meanwhile, United Utilities, Severn Trent, Centrica and National Grid gained in the utility sector, as retailers Tesco, B&M European Value Retail, Next and Sainsbury's also rose.

"Miners like Anglo American, Antofagasta and Rio Tinto are languishing towards the bottom of the UK index after China issued a modest growth target of 5% for its economy this year," Victoria Scholar, head of investment at Interactive Investor, wrote.

North America

US stocks treaded water Monday, with investors awaiting Fed Chair Jerome Powell's congressional testimony on Tuesday and important labor market data at the end of the week.

The S&P 500 climbed less than 0.1% and the Dow Jones Industrial Average added 0.1%, or about 40 points. The Nasdaq Composite slipped 0.1%. Stocks opened the session modestly higher before paring their advance in afternoon trading.

All three major indices climbed last week, with the Dow Jones breaking a four-week losing streak. The indices, however, are still down from their recent highs in February, when a string of economic reports suggested that the economy is stronger, and inflation is hotter, than many investors had previously believed.

As a result of those reports, many investors are less confident now that the US will enter a recession this year. But they also have become more concerned that the Fed will leave interest rates higher for longer. That has hurt stocks by in part increasing the relative attractiveness of ultrasafe assets such as US Treasury bills.

It has also raised anxieties that a ramped-up effort by the Fed to bring down inflation might ultimately cause a more painful recession down the road, crimping corporate earnings when a downturn finally does arrive.

"Markets have been, and today are still, in a tug of war between hope and dread as to what the Fed might say or do," said Brian Jacobsen, senior investment strategist at Allspring Global Investments.

Investors are eagerly anticipating Mr. Powell's testimony before Congress on Tuesday and Wednesday because they will be his first public remarks since government agencies reported higher-than-expected inflation data last month. In recent appearances, Mr. Powell has struck relatively optimistic notes that inflation, while still too high and coming down only slowly, is finally in the process of easing toward the Fed's 2% annual target.

Investors will be watching to see whether last month's data has significantly altered Mr. Powell's view. Then, on Friday, employment data will provide the most important look yet at how the economy developed in February, with investors counting on a slowdown from the torrid pace of job gains that were reported for January.

Shares of some technology giants, such as Apple and Microsoft, were a bright spot Monday. Apple's stock climbed 1.9%. On Sunday, Goldman Sachs analysts started coverage of the shares with a buy rating and a $199 12-month price target. Shares traded Monday around $155.

Mining and energy stocks were among the worst performers after China set an economic growth target for this year at 5%, the lowest in more than a quarter century. Shares in copper and gold mining company Freeport-McMoRan fell 2.2%, while oil services giant Halliburton dropped 0.5%.