Monday, October 18, 2021

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    European stocks edge up on China stimulus hopes

    The latest information on the market

    European stock markets have opened higher after signs that Chinese authorities are taking steps to boost the country’s slowing economy.

    The UK’s FTSE 100 increased by 04%, similar to Germany’s Xetra Dax. The regional Stocks Europe 600 Index rose 0.6%.

    Stoxx was also boosted by travel share, as reports suggested that the UK government would relax restrictions and quarantine rules in time for school breaks. British Airways owner IAG increased 4% and package travel provider Tui increased 5%.

    The People’s Bank of China injected an additional $ 14 billion in short-term funds into the country’s banking system on Friday. This is the largest amount since February. Analysts saw this as a move to ease post-debt crisis lending terms at the major homebuilder Evergrande.

    Central Bank of China in April Told the lender Suppressing credit supply to prevent an asset bubble after the economy has rapidly regained its vitality following the first wave of coronavirus.

    National authorities are working now Decelerate In the industrial, retail and real estate markets, the outbreak of the highly infectious Delta Covid-19 variant has constrained travel and put pressure on the global supply chain.

    Marco Wilner, Head of Investment Strategy at NN Investment Partners, said: “This year we have seen efforts to rebalance the Chinese economy and leverage it from the real estate sector,” he added. Positive legs. “

    The CSI300 Index for mainland China stocks rose 1%. Hong Kong’s Hang Seng Index rose 0.5%, but lost 14% quarterly.

    Friday, Financial Times clearly Unpublished inflation forecasts by the European Central Bank suggest that interest rates are on the rise in just over two years.

    Yields on German 10-year bonds, a barometer of eurozone interest rate expectations, rose 0.02 points to minus 0.293 percent.

    “The FT’s conclusion that interest rate hikes may already take place in 2023 is inconsistent with forward guidance,” said the ECB.

    “But if the road to such numbers soon appears in their predictions, it will impact future ECB messaging, which is important to the market,” commented Deutsche Bank strategist Jim Reed.

    Elsewhere, U.S. government bonds and major currencies are expected to drift ahead of next week’s Federal Reserve Board meeting, providing clues as to when to reduce $ 120 billion in bond purchases during crisis times. It has been.

    Yields on 10-year Treasuries were flat at 1.331%.

    The euro carved 0.1 percent higher than the dollar to buy $ 1.1780. Sterling was stable at $ 1.3798.

    US retail sales were much better than economists expected in August, according to data released Thursday. Indicated, There is growing speculation this week that the Fed may take the first step towards eliminating its bond-buying program.

    Brent crude, the oil benchmark, fell 0.5% to $ 75.30 a barrel.

    European stocks edge up on China stimulus hopes Source link European stocks edge up on China stimulus hopes

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