European markets stay cautious after China eases pandemic measures
Graphic: Global asset performance Link
Graphic: World FX rates Link
By Elizabeth Howcroft
LONDON, Dec 5 (Reuters) - European stock indexes opened slightly lower on Monday, finding little support from an easing of China's domestic pandemic restrictions, after market sentiment was dampened by U.S. jobs data on Friday that raised fears of persistent inflation.
Asian shares had been boosted early on Monday by hopes that China taking steps to ease its zero-COVID policy would support global growth and increase commodity demand.
More Chinese cities announced an easing of COVID-19 measures on Sunday, after unprecedented protests against the restrictions last weekend. The news boosted Chinese stocks and pushed the yuan past 7 per dollar. MSCI's broadest index of Asia-Pacific shares outside Japan was up 1.7% .MIAPJ0000PUS .
But the impact on European markets was limited as investors were cautious about the extent of the reopening, with the MSCI world equity index, which tracks shares in 47 countries, up just 0.3% on the day .MIWD00000PUS .
Europe's STOXX 600 was down 0.1% .STOXX , Germany's DAX was down 0.4% .GDAXI but London's FTSE 100 was up 0.2% .FTSE .
“I think for an amount of time we won’t know the real definition of zero-COVID because it has been changing and evolving very very quickly in the last two weeks," said Eddie Cheng, head of multi-asset portfolio management at Allspring Global Investment.
The new easing "could add to a stronger demand for raw materials but we also need to see… how it evolves," Cheng said.
China's "zero-COVID" policies have weighed heavily on the world's second-largest economy. Services activity shrank to six-month lows in November.
Market sentiment in Europe is still under pressure from "some inflation forces," Cheng said, in particular the region's energy crisis.
Euro zone business activity declined for a fifth month in November, final PMI data showed, suggesting the economy was sliding into a mild recession.
November's robust U.S. payrolls report knocked Wall Street on Friday as it challenged hopes for a less aggressive Federal Reserve.
The euro was up 0.2% against the dollar, at around $1.0557 EUR=EBS , while the U.S. dollar index was flat at 104.46 =USD , recovering after optimism about China's lockdown-easing sent it to five-month lows earlier in the session.
Euro zone government bonds were little changed, with the benchmark German 10-year yield at 1.848% DE10YT=RR .
The European Central Bank should raise interest rates by 50 bps on Dec. 15, French central bank chief Francois Villeroy de Galhau said on Sunday, reinforcing expectations for the ECB to slow the pace of monetary tightening after back-to-back 75 bp hikes.
Investor attention remains focused on the pace of central banks ending their rate-hiking cycles. The Reserve Bank of Australia meets on Tuesday, and is expected to raise rates by a mere 25 basis points. The Bank of Canada meets on Wednesday and is expected to raise rates by 50 bps.
Oil prices rose after OPEC+ nations held their output targets steady.
The Group of Seven price cap on Russian seaborne oil came into force on Monday as the West tries to limit Moscow's ability to finance its war in Ukraine. Russia has said it will not abide by the measure even if it has to cut production.
Global FX performance Link
Global asset performance Link
Reporting by Elizabeth Howcroft
Editing by Peter Graff
免責聲明: XM Group提供線上交易平台的登入和執行服務，允許個人查看和/或使用網站所提供的內容，但不進行任何更改或擴展其服務和訪問權限，並受以下條款與條例約束：（i）條款與條例；（ii）風險提示；（iii）完全免責聲明。網站內部所提供的所有資訊，僅限於一般資訊用途。請注意，我們所有的線上交易平台內容並不構成，也不被視為進入金融市場交易的邀約或邀請 。金融市場交易會對您的投資帶來重大風險。