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Oil stocks are rising, while China is easing quarantine rules

Oil stocks are rising, while China is easing quarantine rules
Written by boustamohamed31

LONDON, June 28 (Reuters) – Global stocks moved into positive territory on Tuesday as oil prices hardened following China’s decision to ease some quarantine requirements for international arrivals, raising hopes for stronger growth and a revival in demand. raw materials.

China has halved the quarantine time for incoming passengers, significantly easing one of the strictest COVID-19 restrictions in the world, which has deterred travel in and out of the country since 2020. Read more

Asian stocks rose after the announcement, and European stocks opened steadily on the green, which sent the MSCI benchmark for global stocks (.MIWD00000PUS) in positive territory and on its way to its fourth consecutive daily profit.

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China’s strict zero-COVID-19 regulations are hampering activity in the world’s number two economy, but easing travel restrictions and reopening major cities from the blockade raises optimism that growth may be back on track.

“It’s a good step forward,” said Hani Redha, a multi-asset portfolio manager at PineBridge Investments.

“It’s not enough to lead to a very stable recovery, but it will definitely be positive gradually.”

MSCI’s broadest Asia-Pacific stock index (.MIAP00000PUS) increased by 0.3%, while Hang Seng in Hong Kong (.HSI) reversed earlier losses to rise 0.7% and the Chinese CSI 300 index (.CSI300) won over 1%. Tourist actions of China (.CSI930633) increased by over 5.5%.

The pan-European STOXX 600 (.STOXX) has risen 0.6%, driven by oil and gas reserves and production, but the outlook for developed market stocks remains challenging as central banks try to balance high inflation with slowing growth.

“Stock markets will not come out until central banks change their rhetoric to a less hawkish position,” said Salman Beig, portfolio manager, cross-asset solutions, at Unigestion

“Unfortunately for many investors, such a turnaround is unlikely to happen until the economy slows down enough to bring inflation steadily down.

The European Central Bank’s Central Banking Forum in Sintra continued on Tuesday with a focus on a speech by ECB President Christine Lagarde.

Lagarde said the ECB would move gradually as it began to raise interest rates, but with the ability to act decisively on any deterioration in medium-term inflation, especially if there are signs of declining inflation expectations. Read more

Eurozone government bond yields remained close to their highest levels after Lagarde’s comment, as Germany’s 10-year yield, a benchmark for the bloc, rose 8 basis points to 1.63%.

The euro changed slightly against the dollar after Lagarde’s initial comments, while the Chinese offshore yuan rose 0.1% after Beijing’s measures to ease travel restrictions.

The dollar index, which measures greenbacks against a basket of six currencies, changed slightly to 103.97.

Oil prices have risen since China eased quarantine rules, with a focus on limited supplies as G-7 leaders agreed to explore price caps on Russian oil and gas imports. Read more

US crude rose 1.41% to $ 111.08 a barrel. Brent crude jumped 1.3 percent to $ 116.59 a barrel.

“A lot of news about limited supplies has supported the (oil) market,” said analysts at the Commonwealth Bank of Australia. “Political unrest could cut supplies from several second-tier producers, Ecuador and Libya. And then there was the proposed price cap on Russian G-7 oil. “

Gold was 0.2% higher, with the spot price trading at $ 1827 per ounce.

Bitcoin rose 0.8 percent to $ 20,870 after falling to $ 17,588.88 earlier this month.

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Report by Samuel Indic in London and Julie Ju in Hong Kong; Edited by Jacqueline Wong

Our standards: The principles of the Thomson Reuters Trust.

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