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Bloomberg
US futures rise with stocks as signs of China’s recovery and resilience in Europe stoked optimism about the global economy. Treasuries and the dollar also gained.
Contracts on all three major US gauges gained more than 1%, signalling a strong start to the first day of trading on Wall Street this year. Tesla Inc. dropped 4.1% in premarket trading after fourth-quarter deliveries missed estimates. The Stoxx Europe 600 Index climbed as a surprise drop in the German unemployment showed resilience in the
region’s biggest economy.
Stocks in Hong Kong and mainland China rallied, with a recovery in subway use indicating Covid infections may have peaked in some of the country’s biggest cities. US-listed Chinese firms including internet stocks Alibaba Group Holding Ltd. and Baidu Inc. rose in premarket trading, as did electric vehicle makers such as Nio Inc.
Investors are kicking off 2023 with tempered expectations after sharp swings last year saw 20% in value wiped out from global equities, the worst showing since the financial crisis. Bonds also declined as central banks hiked interest rates to slow inflation.
“Hopes that supply chain issues in China will continue to ease, which could help bring down inflation, may be feeding into sentiment,†said Susannah Streeter, senior investment and markets analyst at Hargreaves Lansdown. Traders are “seizing onto glimmers of hope that once the winter waves die down, China’s recovery could be back on track.â€
A dollar gauge advanced after two days of declines. The yen briefly strengthened to a six-month high versus the greenback, before paring gains.
Elsewhere, oil prices rose while European gas prices declined as persistent mild weather curbed demand.
The Stoxx Europe 600 rose 1.8% as of 9:59 am London time and S&P 500 futures also climbs 1.1%.
While Nasdaq 100 futures rose 1.3%, futures on the Dow Jones Industrial Average also gains 1%. The MSCI Asia Pacific Index was little changed and the MSCI Emerging Markets Index was also little changed.