Daily Market Analysis and Forex News
Risk appetite picks up as China eases zero-Covid policy
Stock markets are gaining while the US dollar is softening after China announced it would drop its quarantine requirements for inbound visitors. This further eases three-year border controls aimed at curbing Covid-19.
The authorities also downgraded the seriousness of the virus as it gradually evolves into a common respiratory infection. The latest policy moves from China indicated that economic activity in most major cities may return to normal very quickly which is positive for investors.
Asia-Pacific stocks are in the green while the aussie is the standout currency major. Some markets including in Hong Kong and Australia remain closed on Tuesday.
US stocks futures are showing decent gains with markets in holiday mode with thin volumes and liquidity.
Wall Street had closed higher on Friday with the benchmark S&P500 ending 0.6% higher but Friday’s gains were not enough to stop both the benchmark broader index and the tech-heavy Nasdaq closing lower for a third week in a row.
That is the first such losing streak since September and with four days of trading left this year, sees the S&P500 and Nasdaq losing around 20% and 33% respectively, which is the worst performance since the GFC 2008 crisis.