Saturday, July 13, 2024

Stocks, oil rise as China eases quarantine rules


LONDON (Reuters) – Global stocks moved into positive territory on Tuesday, while oil prices strengthened following China’s decision to ease some quarantine requirements for international arrivals, raising hopes of stronger growth and a rebound in demand for commodities.

China has cut quarantine time for incoming travelers by half in a significant easing of one of the world’s strictest restrictions for COVID-19, which has hampered travel in and out of the country since 2020. Read more

Asian stocks rose after the announcement and European stocks opened steadily in the green sending the MSCI Global Stock Index (.MIWD00000PUS) It is in positive territory and on its way to its fourth consecutive daily gain.

Register now to get free unlimited access to

China’s strict non-proliferation regulations have been a drag on activity in the world’s second-largest economy, but easing travel restrictions and reopening major cities from lockdown is boosting optimism that growth can get back on track.

“This is a good step forward,” said Hani Reda, multi-asset portfolio manager at PineBridge Investments.

“It is not enough to lead to a very strong recovery, but it will certainly be increasingly positive.”

MSCI’s broadest index of Asia Pacific shares (.MIAP00000PUS.) It rose 0.3%, while the Hang Seng Index in Hong Kong (.HSI) Reversing its previous losses to rise by 0.7% and the Chinese CSI 300 index (.CSI300) gained more than 1%. Tourism stocks in China (.CSI930633.) gained more than 5.5%.

stokes 600 pan europe (.stoxx) It rose 0.6%, boosted by oil, gas and mining stocks, but the outlook for developed market stocks remains tough as central banks try to balance stubbornly high inflation with slowing growth.

See also  Opinion polls show Latvian Prime Minister's New Unity party leading in the vote

“Equity markets will not be out of danger until central banks shift their rhetoric to a less hawkish stance,” said Salman Page, portfolio manager, cross-asset solutions, at Unigestion.

“Unfortunately for many investors, such a pivot is likely to occur only after the economy has slowed enough to bring inflation onto a sustainable downward path.”

The European Central Bank Forum on Central Banks in Sintra on Tuesday continued to focus on ECB President Christine Lagarde’s speech.

Lagarde said the ECB will move gradually when it starts raising interest rates but with the option to act decisively on any deterioration in inflation in the medium term, especially if there are signs of unwinding inflation expectations. Read more

Eurozone government bond yields stabilized near their highest levels after Lagarde’s comments, as Germany’s 10-year bond yield, the bloc’s leading indicator, rose 8 basis points at 1.63%.

The euro was little changed against the dollar after Lagarde’s initial comments, while the offshore Chinese yuan rose 0.1% after Beijing’s measures to ease travel restrictions.

The dollar index, which measures the greenback against a basket of six currencies, was little changed at 103.97.

Oil prices swung higher after China eased quarantine rules, already focusing on supply shortages as Group of Seven leaders agreed to study price caps for Russian oil and gas imports. Read more

US crude rose 1.41% to $111.08 a barrel. Brent crude jumped 1.3 percent to $116.59 a barrel.

“The news of a market shortage has boosted (oil),” analysts at the Commonwealth Bank of Australia said. “Political turmoil has reduced supply from two second-tier producers, Ecuador and Libya. Then there is the Russian oil price ceiling proposed by the G7.”

See also  The UK is arranging an additional evacuation flight from Port Sudan on Monday

Gold was up 0.2% with spot trading at $1,827 an ounce.

Bitcoin is up 0.8%, trading at $20,870 after dropping to $17,588.88 earlier this month.

Register now to get free unlimited access to

Additional reporting by Samuel Indyk in London and Julie Zhou in Hong Kong; Editing by Jacqueline Wong

Our criteria: Thomson Reuters Trust Principles.

Rainerio Manuel
Rainerio Manuel

"Infuriatingly humble alcohol fanatic. Unapologetic beer practitioner. Analyst."



Hungary’s Orban goes global as peacemaker without a plan

Image source, @PM_ViktorOrban“China not only loves peace, but has...

LIVE – War in Ukraine: Zelensky calls Biden’s cafe a “mistake” that could be “forgotten”

Ukrainian President Volodymyr Zelensky described Joe Biden's cape as...

At least 22 killed after school building collapses in Nigeria | News

A Plateau State police spokesman said 132 people had...