Chinese equities rally
After a weekend of unrest in major Chinese cities, the authorities have signalled they would work towards rolling out the coronavirus vaccines to the older members of their populations. The over 65s have a low rate of vaccination compared to other developed economies and has prevented the reopening of the economy.
Chinese equities rallied on the news and sparked a global risk-on rally.
FTSE 100 miners gain
The optimism from China spilled over into the FTSE 100’s natural resources sector with the mining names dominating the top gainers on Tuesday morning.
easyJet shares slip
easyJet had a record 4th quarter but overall results softer performance in the summer due to flight cancellations overshadowed recent progress as shares fell.
“Bottom line profits remain a little out of reach for easyJet, who’ve seen a wave of headwinds over the year from Omicron early on, to airport disruptions and flight cancellations more recently. Rather than head for the emergency exit, easyJet’s made the best of a bad year and full year results mask a positive fourth quarter, where on some profit measures easyJet posted record numbers,” said Matt Britzman, Equity Analyst at Hargreaves Lansdown.
The pound gains ahead of BoE speech
Traders were betting on positive comments from the Bank of England’s Andrew Bailey ahead of his speech later on Tuesday. The Bank of England are meeting once more before the end of the year and markets will hang on his every word for hints of whether the bank hikes 50bps or 75 bps.
Oil rallies
Oil has faced threats of OPEC+ production increases and concerns about global growth in recent weeks. Today, the prospect of China’s demand increasing saw oil rally.