Shell PLC (NYSE:SHEL) stock is trading higher by 3.1% to $65.21 during Monday’s session due to optimism surrounding China’s economic stimulus plans, which could boost energy demand and industrial activity.
What To Know: Ahead of China's annual Central Economic Work Conference, U.S.-listed stocks with strong ties to China's economy have seen rising investor confidence. Shell's diverse global energy portfolio, which spans traditional oil and gas as well as renewables, is well-positioned to capitalize on this positive momentum.
The Politburo, led by President Xi Jinping, recently pledged "more proactive" fiscal policies and "moderately" looser monetary measures for 2025, aiming to boost domestic consumption and stabilize markets.
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This signals a likely uptick in industrial and infrastructure investments, which are energy-intensive and critical drivers of Shell's core oil and gas operations. China's renewed commitment to spurring growth in its property sector and heavy industries further bolsters demand prospects for fossil fuels and petrochemicals.
Moreover, Shell's significant investments in liquefied natural gas (LNG) align with China's goals to expand cleaner energy use. LNG demand is expected to rise as Beijing balances short-term industrial recovery with long-term environmental goals.
With improving market conditions and potential for robust economic policy measures, Shell could be well-positioned to benefit from a rebound in global energy demand led by China.
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Investors can gain exposure to Shell by investing in the Energy Select Sector SPDR Fund (NASDAQ:XLE)
How To Buy SHEL Stock
Besides going to a brokerage platform to purchase a share – or fractional share – of stock, you can also gain access to shares either by buying an exchange traded fund (ETF) that holds the stock itself, or by allocating yourself to a strategy in your 401(k) that would seek to acquire shares in a mutual fund or other instrument.
For example, in Shell’s case, it is in the Energy sector. An ETF will likely hold shares in many liquid and large companies that help track that sector, allowing an investor to gain exposure to the trends within that segment.
According to data from Benzinga Pro, SHEL has a 52-week high of $74.60 and a 52-week low of $60.34.
