Connect with us

Business

Stocks Climb, Dollar Fades as China Turmoil Eases: Markets Wrap

News Agencies

Published

on

Stocks Climb, Dollar Fades as China Turmoil Eases: Markets Wrap

(Bloomberg) — US equity futures pointed to a moderately stronger open on Wall Street as speculation mounted that unrest in Chinese cities over Covid restrictions would force authorities to move faster in loosening the curbs.

Most Read from Bloomberg

While Beijing on Tuesday stopped short of announcing any concrete steps toward reopening the world’s second-largest economy, it pledged to bolster vaccination among its senior citizens, a move regarded as crucial to ending the loop of harsh Covid Zero curbs. A spokesman for the National Health Commission also said local officials must avoid excessive restrictions.

Futures for the tech-heavy Nasdaq rose 0.5%, with US-listed Chinese stocks in particular rallying in premarket trading. The exchange-traded KraneShares CSI China Internet Fund rose more than 6%, while internet stocks such as Alibaba Group Holding Ltd. and JD.com were higher after sharp falls on Monday. S&P 500 index futures pared earlier gains, while Europe’s Stoxx 600 equity gauge traded near flat, after rising as much as 0.5%.

Advertisement

Global stocks had sold off on Monday as swathes of anti-Covid protests raised fears of a further economic growth setback and fresh disruptions at factories producing goods for Western multinationals. The S&P 500 closed 1.5% lower, dropping the most since early November.

“We do not expect China policy to publicly shift away from the Zero Covid stance, however, we could see some easing of the policy privately and in localized areas,” Jefferies analyst Mohit Kumar wrote in a note. Despite Monday’s China-related setbacks, he said “markets are in a happy state and are comforted by the expected reduction in the pace of rate hikes from central banks.”

Advertisement

Many economists expect that Federal Reserve Chair Jerome Powell’s speech on Wednesday will cement bets that the central bank will slow its pace of rate increases next month — while reminding Americans that its fight against inflation will run into 2023. That view, alongside the easing in China tensions, knocked the dollar lower against a basket of peers, following two days of gains.

Still, central bankers have signaled rate hikes have further to run. St. Louis President James Bullard, for instance, warned that investors may be underestimating the chances of higher rates. His New York counterpart John Williams and Fed Vice Chair Lael Brainard also flagged that rates need to go higher.

Elsewhere, European Central Bank President Christine Lagarde signaled on Monday that more rate hikes are likely.

Advertisement

The hawkish drumbeat from central bankers is raising fears of a downturn, with global bonds joining US peers in signaling a recession, as a gauge measuring the worldwide yield curve inverted for the first time in at least two decades.

“I think the big risk for 2023 will be economic growth, because we have had this very very rapid move up in interest rates that tends to have a lag in terms of the impact on the economy,” Charlotte Ryan, co-head of investments at CCLA, told Bloomberg Television.

Investors highlighted stagflation as the key risk for the global economy next year, with almost half of the 388 respondents to the latest MLIV Pulse survey expecting a scenario where growth continues to slow while inflation remains elevated.

Advertisement

Asian trading saw strong rallies in Hong Kong and on the Chinese mainland, while the offshore-traded Chinese yuan jumped about 1% against the dollar.

Elsewhere in markets, oil extended a rebound from the lowest level in almost a year on speculation that the Organization of Petroleum Exporting Countries and its allies will deepen supply cuts to respond to weakening global demand.

Key events this week:

Advertisement
  • Euro area economic confidence, consumer confidence, Tuesday

  • US Conference Board consumer confidence, Tuesday

  • EIA crude oil inventory report, Wednesday

  • China PMI, Wednesday

  • Fed Chair Jerome Powell speech, Wednesday

  • Fed releases its Beige Book, Wednesday

  • US wholesale inventories, GDP, Wednesday

  • S&P Global PMIs, Thursday

  • US construction spending, consumer income, initial jobless claims, ISM Manufacturing, Thursday

  • BOJ’s Haruhiko Kuroda speaks, Thursday

  • US unemployment, nonfarm payrolls, Friday

  • ECB’s Christine Lagarde speaks, Friday

Some of the main moves in markets:

Stocks

  • The Stoxx Europe 600 was little changed as of 9:57 a.m. London time

  • Futures on the S&P 500 rose 0.2%

  • Futures on the Nasdaq 100 rose 0.4%

  • Futures on the Dow Jones Industrial Average were little changed

  • The MSCI Asia Pacific Index rose 1.5%

  • The MSCI Emerging Markets Index rose 2.1%

Currencies

Advertisement
  • The Bloomberg Dollar Spot Index fell 0.5%

  • The euro rose 0.2% to $1.0364

  • The Japanese yen rose 0.6% to 138.12 per dollar

  • The offshore yuan rose 0.9% to 7.1792 per dollar

  • The British pound rose 0.3% to $1.1990

Cryptocurrencies

  • Bitcoin rose 2% to $16,513.79

  • Ether rose 3.9% to $1,217.46

Bonds

  • The yield on 10-year Treasuries declined one basis point to 3.67%

  • Germany’s 10-year yield declined nine basis points to 1.90%

  • Britain’s 10-year yield declined three basis points to 3.10%

Commodities

Advertisement
  • Brent crude rose 2% to $84.85 a barrel

  • Spot gold rose 0.7% to $1,753.89 an ounce

This story was produced with the assistance of Bloomberg Automation.

–With assistance from Richard Henderson.

Most Read from Bloomberg Businessweek

Advertisement

©2022 Bloomberg L.P.

Continue Reading
Advertisement

Advertisement

Breaking News

Editor Pick’s

Latest Entertainment

Lea Michele reflects on 'Glee' toxic workplace scandal: 'My life got turned upside down' Lea Michele reflects on 'Glee' toxic workplace scandal: 'My life got turned upside down'
Entertainment16 mins ago

Lea Michele reflects on ‘Glee’ toxic workplace scandal: ‘My life got turned upside down’

Lea Michele looks back at Glee scandal after multiple co-stars called her out for bad behavior. (Photo: Reuters) Lea Michele...

Gus Kenworthy says kiss with on-screen boyfriend was cut from '80 for Brady' Gus Kenworthy says kiss with on-screen boyfriend was cut from '80 for Brady'
Entertainment2 hours ago

Gus Kenworthy says kiss with on-screen boyfriend was cut from ’80 for Brady’

Gus Kenworthy attends the Los Angeles premiere of 80 for Brady on Jan. 31 at the Regency Village Theatre. (Photo:...

Alec Baldwin wants 'Rust' prosecutor dismissed as she's a Republican lawmaker: 'Unconstitutional' Alec Baldwin wants 'Rust' prosecutor dismissed as she's a Republican lawmaker: 'Unconstitutional'
Entertainment3 hours ago

Alec Baldwin wants ‘Rust’ prosecutor dismissed as she’s a Republican lawmaker: ‘Unconstitutional’

Alec Baldwin seen in New York City as he’s officially charged with involuntary manslaughter for the fatal shooting of cinematographer...

Harry Styles' dancers say Grammys set malfunction nearly caused chaos Harry Styles' dancers say Grammys set malfunction nearly caused chaos
Entertainment3 hours ago

Harry Styles’ dancers say Grammys set malfunction nearly caused chaos

Harry Styles and a crew of dancers unexpectedly found themselves rotating the wrong way during a live performance at this...

Pamela Anderson says she penned Britney Spears a 'private letter' to thank her for support Pamela Anderson says she penned Britney Spears a 'private letter' to thank her for support
Entertainment4 hours ago

Pamela Anderson says she penned Britney Spears a ‘private letter’ to thank her for support

Pamela Anderson sent Britney Spears a private letter thanking her for her public support. (Photos: Getty Images) Pamela Anderson says...

Is Kevin Costner quitting 'Yellowstone'? Everything you need to know about the state of the hit franchise Is Kevin Costner quitting 'Yellowstone'? Everything you need to know about the state of the hit franchise
Entertainment5 hours ago

Is Kevin Costner quitting ‘Yellowstone’? Everything you need to know about the state of the hit franchise

Kevin Costner in Season 5 of the Paramount hit Yellowstone. (Photo: Courtesy of Paramount Network) Could the Dutton ranch shut...

'They live up to the hype': These Bose noise-cancelling headphones are down to $279 'They live up to the hype': These Bose noise-cancelling headphones are down to $279
Entertainment7 hours ago

‘They live up to the hype’: These Bose noise-cancelling headphones are down to $279

If you haven’t yet treated yourself to a pair of top-notch noise-cancelling headphones, the moment has come. Right now, Amazon...

These Bose noise-cancelling headphones 'live up to the hype' — and they're down to $279 These Bose noise-cancelling headphones 'live up to the hype' — and they're down to $279
Entertainment7 hours ago

These Bose noise-cancelling headphones ‘live up to the hype’ — and they’re down to $279

If you haven’t yet treated yourself to a pair of top-notch noise-cancelling headphones, the moment has come. Right now, Amazon...

Advertisement

Latest Sports

NFL rumors: Jimmy Garoppolo-Kyle Shanahan relationship soured late in season NFL rumors: Jimmy Garoppolo-Kyle Shanahan relationship soured late in season
Sports36 mins ago

NFL rumors: Jimmy Garoppolo-Kyle Shanahan relationship soured late in season

Jimmy Garoppolo's relationship with Kyle Shanahan and John Lynch reportedly went south in the days or weeks leading up to...

Plaschke: Lakers snub Kyrie Irving and annoy LeBron James Plaschke: Lakers snub Kyrie Irving and annoy LeBron James
Sports1 hour ago

Plaschke: Lakers snub Kyrie Irving and annoy LeBron James. Good for them

LeBron James wanted to be reunited with Kyrie Irving, but the NBA's soon-to-be all-time leading scorer has been a lousy...

Bethany Hamilton says she'll boycott World Surf League over its transgender policy Bethany Hamilton says she'll boycott World Surf League over its transgender policy
Sports1 hour ago

Bethany Hamilton says she’ll boycott World Surf League over its transgender policy

The 32-year old surfer doesn't support eligibility for transgender athletes to compete in women's events.

LeBron James scoring tracker: Will Lakers star break Kareem Abdul-Jabbar's record on Tuesday? LeBron James scoring tracker: Will Lakers star break Kareem Abdul-Jabbar's record on Tuesday?
Sports2 hours ago

LeBron James scoring tracker: Will Lakers star break Kareem Abdul-Jabbar’s record on Tuesday?

LeBron James is closing in on Kareem Abdul-Jabbar's all-time scoring record, and the Los Angeles Lakers superstar could break the...

Aaron Rodgers says he will contemplate football future by spending '4 nights in complete darkness' Aaron Rodgers says he will contemplate football future by spending '4 nights in complete darkness'
Sports2 hours ago

Aaron Rodgers says he will contemplate football future by spending ‘4 nights in complete darkness’

The Packers QB will be in isolation and says the experience could cause hallucinations.

LeBron was never fully satisfied with his game LeBron was never fully satisfied with his game
Sports3 hours ago

LeBron was never fully satisfied with his game

For LeBron James, becoming "a complete basketball player" has been a 20-year journey that has him on the cusp of...

Chris Simms explains how Mac Jones landed in Bill Belichick's 'doghouse' in 2022 Chris Simms explains how Mac Jones landed in Bill Belichick's 'doghouse' in 2022
Sports3 hours ago

Chris Simms explains how Mac Jones landed in Bill Belichick’s ‘doghouse’ in 2022

The Patriots' dysfunction on offense last season apparently included Mac Jones getting on Bill Belichick's bad side by taking matters...

What Ja Morant said when asked about friends' postgame confrontation with Indiana Pacers What Ja Morant said when asked about friends' postgame confrontation with Indiana Pacers
Sports4 hours ago

What Ja Morant said when asked about friends’ postgame confrontation with Indiana Pacers

Morant spoke to reporters Tuesday morning for the first time since the incident became public.

Technology Hot News

Led by "Amazon" and "Microsoft" . Led by "Amazon" and "Microsoft" .
Technology3 weeks ago

Led by "Amazon" and "Microsoft" .. the technology giants are planning to lay off 64,000 employees

After 10 years of driving the stock market bull run, big tech companies are racing to downsize staff to adapt...

Apple introduces MacBooks with new M2 processors Apple introduces MacBooks with new M2 processors
Technology3 weeks ago

Apple introduces MacBooks with new M2 processors

Yesterday, Tuesday, Apple unveiled MacBooks powered by the new, faster “M2 Pro” and “M2 Max” processor chips, in a surprise...

All you need to know about the upcoming Galaxy S23 phones from Samsung All you need to know about the upcoming Galaxy S23 phones from Samsung
Technology3 weeks ago

All you need to know about the upcoming Galaxy S23 phones from Samsung

Samsung has officially announced that the (Galaxy Unpacked 2023) event will be held this year on Wednesday, February 1, which...

FTX Exchange Announces Hacking and Stolen $415 Million in Cryptocurrency FTX Exchange Announces Hacking and Stolen $415 Million in Cryptocurrency
Technology3 weeks ago

FTX Exchange Announces Hacking and Stolen $415 Million in Cryptocurrency

Bankrupt American cryptocurrency firm FTX announced today, Wednesday, that $415 million in cryptocurrency has been hacked and stolen from the...

Because of a "fraudulent tweet".. Because of a "fraudulent tweet"..
Technology3 weeks ago

Because of a "fraudulent tweet"… Elon Musk's trial begins

Elon Musk's trial began Tuesday in San Francisco with the selection of jury members who will have to decide whether...

An electric spoon replaces salt and spices, but with conditions An electric spoon replaces salt and spices, but with conditions
Technology3 weeks ago

An electric spoon replaces salt and spices, but with conditions

Experts have developed an electric spoon that is able to replace spices and flavors and affect the taste buds in...

The biggest dangers of using tracking devices. The biggest dangers of using tracking devices.
Technology3 weeks ago

The biggest dangers of using tracking devices.. so you can escape?

If you spot an unknown Bluetooth tagging device, there are ways to disable the device so it can't track your...

New Twitter. New Twitter.
Technology3 weeks ago

New Twitter.. For You tab to web version

The Twitter platform announced that it will bring the new tab (For You), which launched last Tuesday for iPhones and...

Advertisement