Global Shares Mostly Higher As Markets Eye China Meeting

Analysts expect the meeting will reaffirm Xi’s his grip on power and stronger state control over the economy. They expect no change to Beijing’s “zero-COVID policy.
Global Shares Mostly Higher As Markets Eye China Meeting

Global shares were mostly higher Monday as investors kept their eyes on a weeklong Communist Party congress in China.

France’s CAC 40 added 0.5 per cent in early trading to 5,961.27. Germany’s DAX gained 0.5 per cent to 12,498.72. Britain’s FTSE 100 rose 0.5 per cent to 6,894.84. The future for the Dow industrials was up 0.7 per cent, while the contract for the S&P 500 gained 0.9 per cent.

Britain’s new Treasury chief was due Monday to announce details of his tax and spending plans Monday, two weeks ahead of schedule, in a bid to calm markets roiled by the government’s economic policies.

Chancellor of the Exchequer Jeremy Hunt was expected to ditch more of the measures announced by the government of Prime Minister Liz Truss on September 23. Since then, the prime minister’s libertarian economic policies have triggered a financial crisis, emergency central bank intervention, multiple U-turns and the firing of her Treasury chief.

In Asia, the meeting of China’s ruling Communist Party opened Sunday and is expected to reappoint Xi Jinping as leader for the next five years. Analysts expect the meeting will reaffirm Xi’s his grip on power and stronger state control over the economy. They expect no change to Beijing’s “zero-COVID policy.”

“Fresh updates from China’s Party Congress are being scrutinized, with the emphasis on technological advancement and national security seemingly brought up as high priorities for China’s longer-term direction. Further de-coupling from U.S. technology seems to be the story,” Yeap Jun Rong, a market strategist at IG in Singapore, said in a commentary.

Japan’s benchmark Nikkei 225 slipped 1.2 per cent to finish at 26,775.79. Australia’s S&P/ASX 200 dipped 1.4 per cent to 6,664.40. South Korea’s Kospi rebounded to gain 0.3 per cent to 2,219.71. Hong Kong’s Hang Seng rose 0.5 per cent to 16,662.19, while the Shanghai Composite rose 0.4 per cent to 3,084.94. In Mumbai, the Sensex gained 0.8 per cent.

In currency trading, the U.S. dollar rose to 148.64 Japanese yen from 148.63 yen. That’s a nearly 32-year low for the yen against the dollar.

Clifford Bennett, Chief Economist at ACY Securities, noted the U.S. dollar will likely continue to rise as interest rates are pushed higher to counter inflation. That’s a hardship for countries facing steep increases in costs for imports and for debt repayments.
 

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