Volkswacht Bodensee - Stock markets mainly lower on China, US economy fears

A weak reading on Chinese consumer prices, showing they slipped back into deflation, added to growth concerns.

The London, Paris and Frankfurt stock markets were all lower nearing the half-way stage, tracking losses in Hong Kong and Shanghai. Tokyo ended higher.

"Unease about the effect of Trump's tariffs hangs over financial markets at the start of the week," said Susannah Streeter, head of money and markets at Hargreaves Lansdown.

"The prospect of a recession in the US is lurking, with consumer confidence falling, companies facing increasing trade complexity and investors turning more nervous," she added.

Trump raised worries about a recession Sunday when asked by Fox News if a downturn was possible this year by replying: "I hate to predict things like that."

He added: "There is a period of transition, because what we're doing is very big -- we're bringing wealth back to America," noting: "It takes a little time".

Traders kept tabs also on Beijing as Chinese leaders wrap up their annual gathering where they set a 2025 annual growth target of around five percent, vowed to make domestic demand their main economic driver, and unveiled a rare hike in fiscal funding.

The need for more measures to boost China's faltering economy was highlighted at the weekend by figures showing consumer prices fell 0.7 percent in February, the first drop in 13 months.

"The data only reinforces what's been clear for months -- deflationary pressures remain firmly entrenched in the world's second-largest economy," said Stephen Innes at SPI Asset Management.

"The property sector remains stuck in the mud, domestic demand is weak, and despite a bounce in tech stocks, the broader wealth effect just isn't filtering through to consumers."

- Key figures around 1100 GMT -

London - FTSE 100: DOWN 0.5 percent at 8,637.70 points

Paris - CAC 40: DOWN 0.5 percent at 8,084.09

Frankfurt - DAX: DOWN 0.9 percent at 22,810.93

Tokyo - Nikkei 225: UP 0.4 percent at 37,028.27 (close)

Hong Kong - Hang Seng Index: DOWN 1.9 percent at 23,783.49 (close)

Shanghai - Composite: DOWN 0.2 percent at 3,366.16 (close)

New York - Dow: UP 0.5 percent at 42,801.72 (close)

Euro/dollar: UP at $1.0862 from $1.0844 on Friday

Pound/dollar: DOWN at $1.2924 from $1.2925

Dollar/yen: DOWN 146.99 yen from 147.97 yen

Euro/pound: UP at 84.06 pence from 83.87 pence

Brent North Sea Crude: UP 0.1 percent at $70.45 per barrel

West Texas Intermediate: UP 0.1 percent at $67.12 per barrel

L.Stucki--VB