Stocks gain as investor optimism over China COVID dents dollar



*

Dollar falls, stocks erase early losses

*

Beijing to ease COVID-19 restrictions

*

Oil retreats with commodities

(Updates prices)

By Amanda Cooper

LONDON, Nov 7 (Reuters) - Global stocks rose on Monday, despite Beijing's denial that it would consider easing its zero COVID-19 policy, which diverted investor flows away from the dollar ahead of potentially pivotal consumer inflation data this week.

Risk assets bounced on Friday due to speculation China was preparing to relax its pandemic restrictions, but over the weekend health officials reiterated their commitment to the "dynamic-clearing" approach to COVID cases as soon as they emerge.

"We can question whether the China story has any veracity, but the market is quite happy to give it credence for the moment, despite the big denials," CIBC Capital Markets head of G10 currency strategy Jeremy Stretch said.

The dollar came under pressure for a second day, as traders latched on to the idea that China could temper some of its restrictions, after the government on Monday indicated it will make it easier for people to enter and exit the capital.

The dollar dropped against other major currencies, pushing the pound up by 0.8% to $1.1457 and boosting the euro EUR=EBS by 0.2% to near-parity at $0.9980.

S&P 500 ESc1 and Nasdaq futures NQc1 edged higher, rising by 0.2% and 0.3%, respectively.

The biggest macroeconomic risk event this week will be the U.S. October consumer price index (CPI), which could influence investor expectations for the likely course of Federal Reserve monetary policy.

Fed Chair Jerome Powell quashed speculation last week that the central bank could slow the pace of its rate rises, saying interest rates would likely stay higher, for longer.

On Friday, the October employment report showed much faster job growth than expected, but slower wage growth and a rise in the unemployment rate, suggesting some of the tightness in the labour market may be easing.

MEDIAN FORECASTS

For Thursday, median forecasts are for annual inflation to slow to 8.0% and for the core to dip a tick to 6.5%.

"If we can see a moderation in core CPI, which I think might be a little bit to imply that, but I think if we do see that, it will encourage this correction to run a little bit further," CIBC's Stretch said.

Speculation that China, the world's largest commodity consumer, might open its economy lifted copper by 7% on Friday in its biggest one-day rally since 2009, while oil rose by more than 4%.

Four Federal Reserve policymakers on Friday indicated they would consider a smaller interest rate hike at their next policy meeting, sounding less hawkish than Chair Jerome Powell.

There are at least seven Fed officials scheduled to speak this week, which will help refine the rate outlook with markets now narrowly leaning toward a half-point rate hike next month to 4.25-4.5%. FEDWATCH

"I don’t think the market will do much ahead of U.S. inflation data," said Massimiliano Maxia, senior fixed income specialist at Allianz Global Investors.

"Markets expect a (Fed) rate hike of 50 bps in December and 25 bps early next year, but they are ready to change their view pretty quickly if consumer price numbers surprise on the upside," he added.

Two-year Treasury yields US2YT=RR , most sensitive to inflation and interest rate expectations, were last up 6 basis points on the day at 4.711%, off Friday's 2007 peak.

Also of note will be midterm U.S. elections on Tuesday where Republicans could win control of one or both chambers and lead to deadlock on fiscal policy.

Meanwhile, oil eased, surrendering some of last week's gains. Brent crude LCOc1 fell 0.7% to $97.96 a barrel, as did U.S. crude CLc1 , to $91.91 a barrel.



Asia stock markets Link
Asia-Pacific valuations Link



Additional reporting by Stefano Rebaudo in Milan and Wayne
Cole in Sydney; Editing by Daniel Wallis, Shri Navaratnam, Ed
Osmond and Tomasz Janowski



면책조항: XM Group 회사는 체결 전용 서비스와 온라인 거래 플랫폼에 대한 접근을 제공하여, 개인이 웹사이트에서 또는 웹사이트를 통해 이용 가능한 콘텐츠를 보거나 사용할 수 있도록 허용합니다. 이에 대해 변경하거나 확장할 의도는 없습니다. 이러한 접근 및 사용에는 다음 사항이 항상 적용됩니다: (i) 이용 약관, (ii) 위험 경고, (iii) 완전 면책조항. 따라서, 이러한 콘텐츠는 일반적인 정보에 불과합니다. 특히, 온라인 거래 플랫폼의 콘텐츠는 금융 시장에서의 거래에 대한 권유나 제안이 아닙니다. 금융 시장에서의 거래는 자본에 상당한 위험을 수반합니다.

온라인 거래 플랫폼에 공개된 모든 자료는 교육/정보 목적으로만 제공되며, 금융, 투자세 또는 거래 조언 및 권고, 거래 가격 기록, 금융 상품 또는 원치 않는 금융 프로모션의 거래 제안 또는 권유를 포함하지 않으며, 포함해서도 안됩니다.

이 웹사이트에 포함된 모든 의견, 뉴스, 리서치, 분석, 가격, 기타 정보 또는 제3자 사이트에 대한 링크와 같이 XM이 준비하는 콘텐츠 뿐만 아니라, 제3자 콘텐츠는 일반 시장 논평으로서 "현재" 기준으로 제공되며, 투자 조언으로 여겨지지 않습니다. 모든 콘텐츠가 투자 리서치로 해석되는 경우, 투자 리서치의 독립성을 촉진하기 위해 고안된 법적 요건에 따라 콘텐츠가 의도되지 않았으며, 준비되지 않았다는 점을 인지하고 동의해야 합니다. 따라서, 관련 법률 및 규정에 따른 마케팅 커뮤니케이션이라고 간주됩니다. 여기에서 접근할 수 있는 앞서 언급한 정보에 대한 비독립 투자 리서치 및 위험 경고 알림을 읽고, 이해하시기 바랍니다.

우리는 웹사이트에서 최고의 경험을 전해드리기 위해 쿠키를 사용하고 있습니다. 자세히 읽거나 쿠키 설정을 변경하세요.

리스크 경고: 고객님의 자본이 위험에 노출 될 수 있습니다. 레버리지 상품은 모든 분들에게 적합하지 않을수 있습니다. 당사의 리스크 공시를 참고하시기 바랍니다.