LONDON, June 28 (Reuters) – Global stocks moved into positive territory on Tuesday as oil prices strengthened after China’s decision to ease some quarantine requirements for international arrivals, raising hopes of stronger growth and a revival in demand for commodities.
China has halved the quarantine time for incoming travelers by significantly easing one of the world’s strictest COVID-19 restrictions, which has been in place since 2020 and has stopped traveling abroad. read more
Asian stocks rose after the announcement, and European stocks opened firmly in green, sending MSCI’s benchmark for global stocks. (.MIWD00000PUS) has become a positive area and is on its way to earning a fourth daily gain in a row.
Sign up now for FREE unlimited access to Reuters.com
China’s tough zero-COVID rules have hampered operations in the world’s number two economy, but easing travel restrictions and reopening major cities from locks reinforce optimism that growth could return to normal.
“This is a good step forward,” said Hani Redha, a multi-asset portfolio manager at PineBridge Investments.
“It’s not enough to lead to a very strong recovery, but it will definitely be positive with growth.”
The largest index of MSCI Asia-Pacific stocks (.MIAP00000PUS) Increased by 0.3%, while Hong Kong’s Hang Seng (.HSI) Previous losses rose 0.7% and China’s CSI 300 Index rose (.CSI300) Earned more than 1%. China’s tourism resources (.CSI930633) Increased by more than 5.5%.
Pan-European STOXX 600 (.STOXX) Increased by 0.6%, boosted by oil, gas and mining stocks, but the outlook for emerging market stocks remains difficult as central banks stubbornly try to balance the slowing growth with high inflation.
Salman Baig, portfolio manager at Unigestion, said: “Unless central banks turn their rhetoric into a less hawkish position, stock markets will not be out of the woods.”
“Unfortunately, for many investors, such a turnaround will not happen until the economy slows down enough to sustain inflation.”
The European Central Bank’s Central Banking Forum in Sintra continued on Tuesday with a speech by ECB President Christine Lagarde.
Lagarde said the ECB would act gradually when rates began to rise, but with the option to act decisively against any deterioration in medium-term inflation, especially if there are signs that inflation expectations are being anchored. read more
Eurozone government bond yields peaked after Lagarde’s comments, with Germany’s 10-year benchmark yield for the bloc rising 8 basis points to 1.63%.
The euro has changed little against the dollar since Lagarde’s first comments, while China’s offshore yuan has risen 0.1 percent since Beijing eased travel restrictions.
The dollar index, which measures the dollar’s exchange rate against six currency baskets, has changed slightly to 103.97.
Oil prices have risen since China eased quarantine rules, and the G7 leaders have already focused on tight supplies as they have agreed to learn how to impose price restrictions on Russian oil and gas imports. read more
US crude rose 1.41% to $ 111.08 a barrel. Brent crude rose 1.3 percent to $ 116.59 a barrel.
“Intense supply news (oil) has strengthened the market,” said analysts at the Commonwealth Bank of Australia. “Political unrest could limit supplies from several secondary producers, Ecuador and Libya. And then there is the price range that the G7 offers for Russian oil.”
Gold rose 0.2% to $ 1,827 an ounce.
Bitcoin fell 0.8% to $ 20,870 after falling to $ 17,588.88 earlier this month.
Sign up now for FREE unlimited access to Reuters.com
Interviews by Samuel Indyk in London and Julie Zhu in Hong Kong; Edited by Jacqueline Wong
Our standards: Thomson Reuters Trust Principles.
