Risk Appetite Rises as China Data and Falling Oil Prices Steady Markets

Global financial markets opened broadly higher Monday after stronger-than-expected Chinese economic figures and a retreat in oil prices lifted investor sentiment. Bitcoin traded around $82,500, up slightly since midnight UTC and registering a modest 24-hour gain. Equities recovered from last week’s tech-led losses: Nasdaq futures climbed over 1%, Japan’s Nikkei rallied 1.8%, and South Korea’s Kospi advanced 0.6%.

Chinese shares edged up and gold held near $4,180, while the Dollar Index remained below 102, close to Friday’s levels. The volatility index (VIX) also calmed after its spike at the end of last week, a pattern that historically accompanies steadier stock moves.

Stronger Chinese Activity Fuels Risk-Taking

Data from China’s National Bureau of Statistics showed third-quarter GDP growth of 4.5% year-on-year, accelerating from 4.3% in Q2. Retail sales of consumer goods rose 1.1%, beating expectations and more than doubling the prior month’s pace. These signs of firmer domestic demand in the world’s second-largest economy tend to boost global risk appetite, given China’s role as a major manufacturer and importer of industrial commodities.

Oil Decline, Geopolitics and Fed Policy Outlook

Oil reversed some recent gains on both sides of the Atlantic amid reports that a U.S. waiver for Russian supplies could increase market availability. Despite the drop, geopolitical tensions in the Middle East continue to present upside risk to prices. A sustained fall in oil would alleviate inflation pressures and could make it easier for the Federal Reserve to contemplate rate cuts later, although the Fed is still expected to keep the fed funds target at 4.75%–5% this month after hiking 25 basis points last month.

Key market takeaways:

• Cryptocurrency: Bitcoin up modestly, around $82,500.
• Equities: U.S. and Asian futures higher following China’s upbeat data.
• Commodities: Oil lower on supply expectations; gold roughly flat.
• Rates: Fed likely to hold policy steady; lower oil could ease inflation concerns.