Financial Markets React as China Considers Easing Covid Restrictions
Login

Financial Markets React as China Considers Easing Covid Restrictions

Estimated Reading Time: 2 minutes
Article Rating:
Based on 1 vote
Login to rate this article.

Azeez Mustapha

Updated:


On Monday, the risk-on mood prevailed throughout markets, with European stocks soaring on persisting hopes China could relax COVID rules. As a result, the euro (EUR) and sterling (GBP) appreciated versus the safe-haven U.S. dollar (USD).

According to a survey released on Monday, investor sentiment in the eurozone climbed in November for the first time in three months, reflecting optimism that this winter’s gas rationing across the continent won’t be necessary due to recent better weather and declining energy costs.

A report released on Monday revealing that German industrial production increased in September, above analyst estimates, also encouraged investors. According to the Federal Statistical Office, industrial output increased by 0.6% from the previous month.

Sterling was last seen trading at $1.1519, up 1,28% in the mid-North American session on Monday, while the euro was up 0.64% at $1.002, its best level since October 27.

European Equity Markets on the Rise

The pan-European STOXX 600 index increased 0.23% as traders pointed out that despite officials’ assurances that they intend to maintain the zero-COVID policy, which calls for lockdowns, quarantining and stringent testing, investors are still betting China would relax its coronavirus controls.

The U.S. dollar index decreased by 0.54% to 110.16 when measured against a basket of currencies. Following news that China would significantly alter its COVID-19 strategy in the upcoming months, it had lost over 2% by the end of the previous week.

Investors were also analyzing Friday’s U.S. jobs report, which revealed that businesses added more positions than forecast (261,000) in October and that hourly wages increased, indicating a persistently tight labor market.

But signs of some improvement in market conditions, coupled with an increase in the unemployment rate to 3.7%, fueled expectations that the long-awaited Federal Reserve turn might be imminent, curbing possible gains for the currency.

On Friday, four Fed members said they would continue to consider a modest interest rate increase at their next policy meeting.

 

You can purchase Lucky Block here. Buy LBLOCK

  • Broker
  • Benefits
  • Min Deposit
  • Score
  • Visit Broker
  • Award-winning Cryptocurrency trading platform
  • $100 minimum deposit,
  • FCA & Cysec regulated
$100 Min Deposit
9.8
  • 20% welcome bonus of upto $10,000
  • Minimum deposit $100
  • Verify your account before the bonus is credited
$100 Min Deposit
9
  • Over 100 different financial products
  • Invest from as little as $10
  • Same-day withdrawal is possible
$250 Min Deposit
9.8
  • The Lowest Trading Costs
  • 50% Welcome Bonus
  • Award-winning 24 Hour Support
$50 Min Deposit
9
  • Fund Moneta Markets account with a minimum of $250
  • Opt in using the form to claim your 50% deposit bonus
$250 Min Deposit
9

Learn to Trade

Never Miss A Trade Again

step 1
Signal Notification

Real-time signal notifications whenever a signal is opened, closes or Updated

step 2
Get Alerts

Immediate alerts to your email and mobile phone.

step 3
Entry Price Levels

Entry price level for every signal Just choose one of our Top Brokers in the list above to get all this free.

Share with other traders!

telegram
Telegram
forex
Forex
crypto
Crypto
algo
Algo
news
News