Global markets rally as China eases Covid restrictions

11 Nov, 2022 12:07 / Updated 2 years ago
Oil prices also jumped on news of a possible end to Beijing’s stringent pandemic policy

European stocks and US index futures rallied on Friday, trading figures show, after China lifted some of its strict anti-Covid measures.

The pan-European Stoxx 600 was up 0.7% in early trading, having risen for a second day in a row, taking its weekly gain to 4.2%. The gains were led by consumer, commodity, and technology stocks.

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

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

The announcement also drove oil prices up, with both benchmarks, WTI and Brent, jumping by about 3%.

The markets were also enthused by a drop in inflation in the US from 8.2% in September to 7.7% in October year-on-year, with some traders apparently hopeful of a possible easing of the Federal Reserve’s monetary policy. According to Bloomberg, however, those expectations may be misplaced as the central bank aims to bring inflation down to its target of 2%.

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