European and Asia stocks rise as China eases Covid restrictions

European and Asian stocks rose on Monday after China released some Cubid-19 restrictions, calming markets that had been shaken by fears of the central bank raising global interest rates to cope with sustained high inflation.

The Stoxx Europe 600 stock index rose 0.9% in morning trades, remaining nearly 9% year-on-year so far due to the economic impact of Russia’s invasion of Ukraine and soaring consumer prices. The London FTSE 100 index rose 1.2% as energy stocks rose after Saudi Arabia raised oil prices for buyers in Asia. German Xetra Dax rose 1 percent.

In Asia, China’s CSI 300 stock rose 1.9% and Hong Kong’s Hong Kong rose 2.7%, with Tokyo, Seoul and Taipei rising smaller.

These moves came after China’s breakthrough, Beijing, said public transport would resume in most provinces and restaurants could reopen to diners, raising hopes of ending the draconian locks that slowed the growth of the world’s second-largest economy. Stretched Global Supply Chain. The contraction of the services sector in China also slowed in May, a close-up survey of business activity View On Monday.

“The balance of probabilities indicates that the worst data points have passed so far,” Jeffrey strategist Sean Derby said in a comment to clients on the Chinese economy, warning that the “ultimate stock catalyst” will not come until the country improves. Covid vaccines shuffle.

Futures trading suggests that the Wall Street S&P 500 will add 1.2% at the opening of New York. after the Another loss last week As job data reinforced the claim for aggressive interest rate hikes by the Federal Reserve, the S&P has been down for eight of the past nine weeks.

“I’m just struggling to see that it’s over,” said Neil Burle, chief investment officer at Premier Miton Investors, about the decline in the U.S. stock market. “I can not see that we have reached the bottom yet.”

Contracts that follow the high-tech Nasdaq 100 added 1.6%.

The data on Friday is expected to show that US inflation reached 8.3% in May on an annual basis, according to a Reuters poll, according to last month’s reading. Said Birl.

The Fed’s main fund interest rate is 0.75%, with money markets expecting an increase to 2.8% by the end of the year.

In the currency markets, sterling rose 0.6% against the dollar to less than $ 1.26 as British Prime Minister Boris Johnson Faced a vote of no confidence Under his leadership on Monday.

The euro added 0.3% to more than $ 1.07 ahead of this week’s European Central Bank meeting. The bank is expected to signal a plan to raise its main deposit rate, currently at minus 0.5 per cent, by a quarter point in July and return to positive borrowing costs in the eurozone by September.

Italian government bonds strengthened after e This was reported by the Financial Times The ECB will strengthen the weaker debt markets of the eurozone countries if they are hit by a sell-off that raises concerns about financing costs.

The yield on Italy’s 10-year bond fell by 0.03 percentage points to 3.37 percent with the rise in the price of the debt.

This comes after the gap between Italy’s 10-year bond yields and Germany – credit rates indices in the two countries – peaked last week since the beginning of 2020.

European and Asia stocks rise as China eases Covid restrictions Source link European and Asia stocks rise as China eases Covid restrictions

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