(CercleFinance.com) – After losing 0.7% yesterday, the Paris Stock Exchange is expected to start climbing slightly on Tuesday morning, buoyed by prospects of an imminent deconfinement in China.
At around 8:15 am, the CAC 40 index futures contract – due in December – rose 40 points to 6704.5 points, heralding a timid recovery in the first trade.
Chinese stock markets all rebounded on Tuesday, benefiting from rumors that Beijing would consider a gradual easing of the current severe restrictions aimed at fighting Covid.
At the end of the session, the large-cap CSI 300 index of the Shanghai and Shenzhen stock exchanges recorded gains of almost 3% while the Shanghai SSE Composite index was up 2.3%.
In Hong Kong, the Hang Seng index jumped 3.8%.
If the number of daily cases continues to rise in mainland China, investors expect a gradual easing of anti-Covid health restrictions after the unrest that rocked the country this weekend.
Some specialists believe that these demonstrations could force Beijing to change its health policy in the coming months.
“Analysts currently expect China’s economy to reopen in April 2023, following the next National People’s Congress,” Wells Fargo teams say.
“Despite this, some professionals believe there is a good chance that the Chinese economy will reopen before this date, with the zero Covid policy ultimately proving too expensive,” according to the California bank.
The prospect of an easing of restrictions to boost the economy helps to alleviate the concerns raised in recent days by the increase in social tensions in several Chinese cities.
The New York Stock Exchange closed lower on Monday, weighed down by the drop in energy values and by the sharp decline of Apple (-2.6%) which was affected by fears that the production of iPhones would be affected by the situation.
The Dow Jones was down 1.5%, as was the S&P 500, and the Nasdaq Composite was down 1.6%.
Speculation about a possible easing of Chinese health restrictions should, among other things, benefit the commodity sector and provide some support for oil, which on the NYMEX rebounded by 1.8% to $78.7.
The slight rise in risk appetite, on the other hand, penalizes the dollar, which loses 0.3% against theEURaround 1.0370.
However, the variations should remain contained on the European markets this morning pending the publication, in the very early afternoon, of the latest data on inflation in Germany.
With prices falling at the pump, the item ‘energy’ should weigh less on inflation in November, but the signs of easing in underlying prices remain very tenuous for the time being.
The coming days will also be driven by US household spending or early inflation data in EUR in November, ahead of much-anticipated US jobs data due on Friday.
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