Global markets cheer possible move by China to ease Covid-19 rules

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China-sensitive stocks, such as miners and luxury goods makers, rallied in Europe, lifting the Stoxx 600 nearly 1% to a seven-week high

London/Singapore — Global stocks rose on Friday for the first time in three days ahead of key US jobs data, as investors took heart from reports China may relax its Covid-19 rules, boosting major currencies against the dollar and prompting a 2% rally in oil.

On Friday, China reported its highest daily count of new local Covid-19 cases in six months and a foreign ministry spokesperson said he was not aware of the report, but equities still surged, pushing Shanghai6s CSI 300 up by over 3%. The Hang Seng rose 5.4%, bringing gains for the week to 8.75%, its strongest weekly performance in a decade.

China-sensitive stocks, such as mining companies and luxury goods makers, rallied in Europe, lifting the Stoxx 600 by nearly 1% to a seven-week high. US index futures rose between 0.6-0.8%, suggesting an upbeat start on Wall Street, where the S&P 500 is heading for its largest weekly decline since late September.

Economists expect 200,000 workers to have been added to US non-farm payrolls in October. This would mark the slowest pace of growth so far in 2022, but most metrics suggest the labour market remains robust.

 

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