Global markets welcome lifting of anti-COVID-19 restrictions in China

(New York) The lifting of numerous anti-COVID-19 restrictions in China gave stock markets a bit of a boost, before investors’ attention focused on Thursday’s European Central Bank meeting and the release of a US price index on Friday.

Updated yesterday at 12:33 p.m.

European stock markets ended higher, in the wake of Asian markets, “boosted by the easing of restrictions” anti-COVID-19 in China, “which, for more than two months, constituted an obstacle to the mood of the markets “, underlines Michael Hewson, analyst of CMC Markets.

Paris rose by 0.98%, Frankfurt by 1.34%, Milan by 1.65%. London gained 1% as British Prime Minister Boris Johnson, weakened by months of Downing Street holiday scandals during lockdowns, faced a vote of no confidence from Conservative Party MPs on Monday night, from which he eventually walked away .

The absence of certain investors on this Whitsun holiday exacerbated the variations.

On the New York Stock Exchange, the Dow Jones gained 0.05%, the NASDAQ index, with a strong technological composition, took 0.40%, and the broader S&P 500 index, 0.31%.

“Buying enthusiasm subsided” as the session progressed, analysts at Briefing.com commented, cutting Wall Street in its tracks for lack of other major news.

The real focus of the markets is expected later this week: Thursday and Friday with “a key meeting of the European Central Bank and a key indicator measuring inflation in the United States”, the consumer price index (CPI), says Neil Wilson, analyst at Markets.com.

Since March, the US central bank has been gradually raising its key rates in an effort to slow demand from consumers and businesses, and thus curb soaring prices. The question is whether it will succeed in this task without torpedoing economic growth.

For its part, the European Central Bank (ECB) preferred not to rush to tighten monetary conditions in the euro zone, despite the fact that it was faced with an acceleration in inflation which reached 8.1% over one year in May.

At its meeting on Thursday, it is expected to decide to end its net debt buybacks, which have so far helped support markets with ample liquidity. Then it should begin a cycle of raising its key rates in July, while taking care not to upset investors by tightening them too quickly and too strongly.

New skirmish between Musk and Twitter

Elon Musk claims in a stock filing released on Monday that Twitter is “actively resisting” its requests for information about bots and spam, which it sees as a clear breach of the social network’s obligations under its takeover bid. .

Twitter shares fell 1.49% to $39.56.

Didi in orbit

Didi was propelled (+ 24.32% to 2.30 dollars), perked up by information from the Wall Street Journal according to which the “Chinese Uber” would soon be authorized by the Chinese authorities to accept new users.

The regulator would thus have completed its investigation, which began nearly a year ago on the platform, which will leave the New York Stock Exchange next week.

Many Chinese securities listed on Wall Street have engulfed in the wake of Didi, like JD.com (+6.53%) and Pinduoduo (+5.60%).

AstraZeneca on a cure for breast cancer

AstraZeneca fell 3.54% despite good results from phase three tests of its breast cancer drug, developed with Japanese laboratory Daiichi Sankyo.

On the side of oil and currencies

Oil prices paused on Monday after rallying in recent weeks to the $120 a barrel level, prompting profit taking.

A barrel of Brent North Sea oil for August delivery slid 0.17% to $119.51.

The barrel of American West Texas Intermediate (WTI) for delivery in July dropped 0.31% to 118.50 dollars after rising in session to 120.99 dollars, a high since the beginning of March.

The euro lost 0.24% against the greenback at 1.0693 dollars.

Bitcoin rose 4.60% to $31,373.


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