December 28, 2022
US Equity Futures Gain on Cautious China Optimism: Markets Wrap
US equity-index futures eked out modest gains on Wednesday as further moves by China to reopen its economy modestly lifted investor sentiment in the final week of a dismal year for markets.
S&P 500 futures fluctuated before edging higher after the index fell 0.4% on Tuesday. Shares in Tesla Inc. rose more than 4% in premarket trading, on track to snap a seven-day losing streak amid concerns about ebbing demand. Treasury yields ticked lower as a global bond selloff eased, and a gauge of the dollar slipped.
ECB’s Guindos Sees Euro Economy in a ‘Very Difficult Situation’
The euro area faces a “very difficult economic situation” that will test individuals and businesses, European Central Bank Vice President Luis de Guindos said.
“The high inflation rates that we are seeing across Europe are coinciding with an economic slowdown and low growth,” he told the Spanish Confederation of Young Entrepreneurs’ Associations in a Dec. 16 interview published on the ECB’s website on Tuesday. “It is very important that individuals and businesses alike are prudent and focus on the long term.”
China Economy Faces Bleak Few Months, Faster Rebound Next Year
China’s removal of the last of its Covid curbs will likely bring more disruption to the economy through the first quarter as infections surge, while increasing the possibility of a faster and stronger rebound in growth next year, economists said.
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