EUROPE Stocks trade mixed

European stock markets were mixed on Wednesday, 28 December 2022, as investors continued to assess the prospect of China's reopening after Beijing said it no longer subject inbound travelers to quarantine from Jan. 8.

At 12:22 GMT, the pan European Stoxx 600 index was up 0.3% to 429.22. The U.K.'s FTSE 100 index added 0.76% to 7,529.77. France's CAC40 index edged down 0.03% to 6,548.85. Germany's DAX index fell 0.17% to 13,971.40. Switzerland's Swiss Market index shed 0.2% to 10,819.33.

China officially announced that it will end quarantine for inbound travelers on Jan. 8 symbolizing an end to the zero-Covid policy that it has held for nearly three years.

 

After China announced the re-opening of borders in a major shift of its epidemic response policies, several countries have announced safety measures like testing and medical scrutiny of passengers, coming from China and other countries where the virus is prevalent.

Nations across the globe are implementing or considering measures to test or restrict travelers from China as the country of 1.4 billion abandons its Covid Zero policy and prepares to reopen borders in early January.

The US is considering new coronavirus precautions for people traveling from China amid questions about the transparency of data China is reporting about the spread of the virus.

Japan moved quickly yesterday to announce steps requiring a negative Covid-19 test upon arrival soon after Beijing said it no longer subject inbound travelers to quarantine from Jan. 8.

Markets participants also wary of the prospect of an imminent recession and a potentially prolonged period of sluggish economic growth. global stock markets have suffered a dismal 2022 as governments and central banks grappled with sky-high inflation arising from the fallout from Russia's war in Ukraine and persistent Covid-19 restrictions in China.

Financials exposed to China rose, with HSBC Holdings and Prudential both rising around 2%.

China-exposed luxury firms such as LVMH and Kering were seeing modest gains on hopes of a demand revival in China.

Higher copper prices boosted miners, with Anglo American, Antofagasta and Glencore climbing 1-2%.

Shares of BP Plc rallied 2.2% and Shell added 1% as oil prices remained supported by news that Russia aims to ban oil sales from Feb. 1 to countries that abide by a G7 price cap imposed on Dec. 5.

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