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Stock markets mostly rose Monday after last week’s global surge, helped by China’s loosening of Covid rules and plans to help its property sector. online news
The dollar advanced against major rivals as traders urged caution over expectations that the Federal Reserve would pull back from massive US interest hikes as inflation cools in the world’s biggest economy.
Presidents Joe Biden and Xi Jinping meanwhile voiced hope Monday that the United States and China can manage growing differences and avoid conflict as they met for the first time in more than three years.
“The burst of euphoria which erupted… at the end of last week is ebbing away after fresh warnings that the fight against inflation is still a hard slog yet to be won,” noted Susannah Streeter, senior investment and markets analyst at Hargreaves Lansdown.
Sentiment won a lift from China, which is relaxing some of its strict Covid-19 restrictions that have hammered growth in the world’s second largest economy.
Authorities have also reportedly unveiled a 16-point plan to support the beleaguered property sector, a major component of the country’s economic engine.
The industry has come under immense pressure since China imposed a number of restrictions in 2020 aimed at reeling in debt as major developers teetered on the brink of collapse.
The latest moves indicate that China’s leadership is beginning to focus on supporting the economy, a crucial driver of global growth, according to analysts.
Nomura’s Lu Ting warned, however, that the “measures may have little direct impact on stimulating home purchases”.
Hong Kong’s stock exchange ended more than one percent higher Monday — having soared over seven percent Friday.
Property firms were the best performers with Country Garden leading the way with a massive 40-percent jump.
Key figures around 12:00 GMT
London – FTSE 100: UP 0.3 percent at 7,336.45 points
Frankfurt – DAX: UP 0.4 percent at 14,279.75
Paris – CAC 40: UP 0.3 percent at 6,612.61
EURO STOXX 50: UP 0.3 percent at 3,880.51
Tokyo – Nikkei 225: DOWN 1.1 percent at 27,963.47 (close)
Hong Kong – Hang Seng Index: UP 1.7 percent at 17,619.71 (close)
Shanghai – Composite: DOWN 0.1 percent at 3,083.40 (close)
New York – Dow: UP 0.1 percent at 33,747.86 (close)
Euro/dollar: DOWN at $1.0280 from $1.0361 on Friday
Pound/dollar: DOWN at $1.1779 from $1.1839
Dollar/yen: UP at 139.52 yen from 138.70 yen
Euro/pound: DOWN at 87.33 pence from 87.49 pence
West Texas Intermediate: DOWN 1.3 percent at $87.82 per barrel
Brent North Sea crude: DOWN 1.0 percent at $94.99 per barrel
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