© Reuters. FILE PHOTO: A view of a giant screen showing stock indices, following the outbreak of the coronavirus disease (COVID-19), in Shanghai, China, October 24, 2022. REUTERS/Aly Song/File Photo
By Herbert Lash
NEW YORK (Reuters) – World stocks rose and oil prices rebounded on Thursday on hopes that China’s easing of anti-COVID measures will help restore global supply chains and curb inflation.
State media CCTV quoted Premier Li Keqiang as saying the change in China’s policy, announced on Wednesday, would allow the country’s economic growth to accelerate.
Wall Street rallied on a rebound in US-listed shares of Chinese companies, while rising on hopes of increased demand from China, its biggest customer. Goldman Sachs (NYSE: NYSE) predicts the price of this metal could reach a record high of $11,000/ton in a year.
“The realization that China is going to get back to work and manufacturing is going to help bring down inflation and that’s a good thing. If inflation can come down, the Fed can step aside and pause,” Tim Ghriskey said. , chief investment strategist at Inverness Attorneys in New York, said.
Hong Kong rose more than 3% and the yuan traded near a three-month high, although economists warn that any economic boost will take time and the easing of measures. Containment measures may temporarily reduce demand as the outbreak increases.
The MSCI Global Stocks Index rose 0.63%, while on Wall Street, it was up 0.52%, up 0.69% and up 1.04%.
Crude oil prices were slightly volatile on expectations that a key oil pipeline from Canada to the US would be back up and running after a leak and bring huge oil supplies back to market at a time of economic downturn across the globe. worldwide has reduced energy demand.
was recently up 0.5% to $72.37 a barrel and at $77.15, down 0.03% on the day.
The dollar fell against the euro as investors weighed the possibility that monetary tightening by the Federal Reserve could spark a recession. The euro rose 0.38% to $1.0545.
Treasury yields were higher as investors awaited next week’s reports on inflation and the Fed’s policy-setting meeting. Global bond yields, which move against their prices, have fallen in recent weeks on expectations that slower growth or a recession will slow rate hikes.
The US consumer price index on December 13 could play a pivotal role in setting longer-term expectations for the Fed’s monetary policy.
Yields rose 7.9 basis points to 3.487%, while German 10-year yields rose to 1.835%.