Stocks are getting a boost from an end to zero-Covid policy in China
Wall Street posted a weekly loss amid persisting recession fears. Investor sentiment was also dented by the data that showed the core personal consumption expenditures price index for November came in at 4.7%, slightly hotter than expected. On Friday, the Dow Jones closed 0.5% higher, the S&P 500 gained 0.6%, and the Nasdaq Composite added 0.2%. Markets were closed Monday for the Christmas holiday.
Today in Asia, equities rose after China announced it will end quarantine for inbound travelers on January 8. The Shanghai Composite rose nearly 1% while markets in Hong Kong, Australia and New Zealand were closed for Christmas holiday. In Japan, the Nikkei 225 rose 0.16% as the data showed retail sales increased for the ninth consecutive month. The Kospi in South Korea gained 0.68% during the regular session.
As upbeat sentiment persists in the final trading days of the year, European stocks opened higher on Tuesday, getting a boost from an end to zero-Covid policy in China. As there are no major earnings or data releases in Europe today while trading volumes stay low and keep declining, the regional indexes are likely to spend the session in tight ranges.
Meanwhile, the dollar stays under pressure amid positive risk sentiment. The USD index has settled below the 104.00 figure today, struggling to attract demand despite lower levels. As such, EURUSD keeps trending north, targeting the 1.0700 handle. The euro looks set to finish the third bullish month in a row, trading around June highs due to a weaker dollar.
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