Volkswacht Bodensee - Stocks rise but lacklustre US retail sales spur caution

The Dow Jones Industrial Average gained around 0.5 percent at the Wall Street open, after US retail sales showed no growth in December, falling short of analysts' expectations.

Investors were hoping for fresh insight into the world's biggest economy and the Federal Reserve's plans for interest rates ahead of Wednesday's release of non-farm payrolls, delayed from last Friday owing to a brief US government shutdown.

Closely watched inflation and retail sales figures are also lined up for release this week.

"It's a big week for economic data, with fresh reads on the consumer, jobs, and inflation. So far, though, the tone has been disappointing," said Brett Kenwell, US investment analyst at eToro.

In Europe, the main indexes in Paris, Frankfurt and London were flat two hours from the close.

But shares in Gucci owner Kering jumped 12 percent to top the Paris CAC 40, after its earnings beat estimates despite net profit plunging.

In London, oil giant BP's stock fell around five percent after it suspended share buybacks and posted a sharp drop in annual net profit.

Shares in British drugmaker AstraZeneca advanced one percent after it posted a jump in net profit thanks to strong cancer drug sales.

In Asia, Tokyo climbed more than two percent to a fresh record, building on gains seen after Prime Minister Sanae Takaichi's stunning parliamentary election triumph.

Analysts say she has a clear mandate to pursue an expansionist fiscal policy to spur growth, though many warn that adding to Japan's massive public debt would alarm investors, threatening both government bond yields and the yen.

Advances across world markets have brought some calm to trading floors after last week's roller-coaster ride across a range of assets, with tech firms battered in particular by AI spending fears.

The readings come amid signs of weakness in the US labour market, with President Donald Trump's top economic adviser Kevin Hassett warning of more soft readings to come.

Traders meanwhile tracked Monday's strong session on Wall Street, where tech firms Microsoft, Meta and Nvidia led the charge.

"The past week has undoubtedly highlighted the fact that there will be both winners and losers from AI," said Joshua Mahony, chief market analyst at Scope Markets.

Investors remain concerned about the vast sums of cash pumped into the artificial intelligence sector, with questions being asked about when profits will be realised, if at all.

- Key figures at around 1500 GMT -

New York - Dow: UP 0.5 percent at 50,383.20 points

New York - S&P 500: UP 0.2 percent at 6,976.36

New York - Nasdaq Composite: UP 0.1 percent at 23,263.79

London - FTSE 100: DOWN 0.3 percent at 10,353.67

Paris - CAC 40: UP 0.2 percent at 8,342.05

Frankfurt - DAX: DOWN 0.1 percent at 24,975.79

Tokyo - Nikkei 225: UP 2.3 percent at 57,650.54 (close)

Hong Kong - Hang Seng Index: UP 0.6 percent at 27,183.15 (close)

Shanghai - Composite: UP 0.1 percent at 4,128.37 (close)

Euro/dollar: UP at $1.1920 from $1.1918 on Monday

Pound/dollar: DOWN at $1.3681 from $1.3695

Dollar/yen: DOWN at 154.38 yen from 155.90 yen

Euro/pound: UP at 87.13 pence from 86.99 pence

Brent North Sea Crude: UP at $69.28 per barrel

West Texas Intermediate: UP 0.1 percent at $64.43 per barrel

R.Flueckiger--VB