Global markets rally as China eases Covid restrictions – Reuters


Oil prices also jumped on news of a possible end to Beijing’s strict pandemic policy.

European stocks and US index futures rallied on Friday, trade data showed, after China lifted some of its strict anti-Covid measures.

The pan-European Stoxx 600 rose 0.7% in early trading, after rising for the second day in a row, taking its weekly gain to 4.2%. Gains were led by consumer, materials and technology stocks.

US futures rose early Friday, with the Dow Jones, S&P 500 and Nasdaq gaining between 0.5% and 0.9%.

In an apparent relaxation of its strict zero-Covid rules, Beijing cut quarantine time for international travelers from five days to two and removed a major restriction on international flights, among other measures, according to Chinese state media. .

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The announcement also boosted oil prices, with both benchmarks, WTI and Brent, jumping around 3%.

Markets were also buoyed by a drop in inflation in the United States from 8.2% in September to 7.7% in October year-on-year, with some traders appearing to hope for a possible easing of monetary policy from the Federal Reserve. . According to Bloomberg, however, those expectations could be misplaced as the central bank aims to bring inflation back to its 2% target.

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