A broker works at the Frankfurt Stock Exchange
by Laetitia Volga
PARIS (Archyde.com) – Major European stock markets are expected to rise on Tuesday following a long Christmas holiday weekend, with the announcement of further easing of anti-COVID health restrictions in China rekindling the appeal of risky assets .
Futures contracts indicate an increase of 0.58% for the Parisian CAC 40, 0.48% for the Dax in Frankfurt and 0.65% for the EuroStoxx 50.
The London Stock Exchange is closed, like those of Hong Kong and Sydney.
The latest news from Beijing has reassured investors since the Chinese authorities have decided to lift the mandatory anti-COVID-19 quarantine from January 8 for anyone entering its territory.
The disease has also been downgraded to category B, such as anthrax or AIDS, whereas until now it was managed according to a category A protocol, such as cholera and bubonic plague.
“There doesn’t appear to be a slowdown in the pace of easing COVID restrictions despite the surge in case numbers,” said Christopher Wong, strategist at OCBC. “This perhaps demonstrates the determination of decision-makers for a total reopening”.
“In addition, reports have been circulating that Beijing may take extraordinary steps to support growth,” he added.
JPMorgan analysts expect a shorter than expected difficult period with a sustained and above-trend economic recovery starting in the second quarter.
IN ASIA
Mainland China’s large-cap CSI 300 index rose 1.15% and Shanghai’s SSE Composite 0.98%, their biggest gains in three weeks.
A Tokyo, le Nikkei a pris 0,16%.
A WALL STREET
The New York Stock Exchange ended up Friday in low volumes: 7.75 billion shares changed hands once morest 11.41 billion on average over the last 20 sessions.
Investors took note of the deceleration, broadly in line with expectations, of the PCE price index, which should not, however, deter the Federal Reserve from raising interest rates next year.
The Dow Jones index gained 0.53% to 33,203.93 points, the S&P-500 gained 0.59% to 3,844.82 points and the Nasdaq Composite advanced 0.21% to 10,497.86 points.
The energy sector (+3.16%) posted the strongest rise, as oil prices benefited from Moscow’s announcement of a plan to reduce its production.
Futures currently signal an open up 0.46% to 0.66%.
CHANGES
The dollar fell in the face of renewed appetite for risk: the index measuring its fluctuations once morest a basket of reference currencies lost -0.39%.
The euro, for its part, gained 0.24% to 1.066 dollars.
RATE
In the US bond markets, the ten-year yield is stable at 3.7452% following jumping on Friday to more than 3.75%, the highest since the end of November, on the prospect that the Fed continues to raise rates in its combat inflationary pressures.
The ten-year German, driven by expectations regarding the European Central Bank’s rates, is moving to its highest level in more than two months at 2.448%.
OIL
The evolution of Chinese health policy and the risks of continued disruption of production in the United States following the winter storm provide support for oil: Brent gains 0.77% to 84.57 dollars a barrel and the American light crude (West Texas Intermediate, WTI) took 0.69% to 80.11 dollars.
(Laetitia Volga, edited by Matthieu Protard and Kate Entringer)
