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Coffee With Greta: Stocks Rally In China


DJIA Futures: -55 (-0.2%)

SPX Futures: -1 (-0.01%)

NASDAQ Futures: +14 (+0.1%)

Good morning friends!

Futures are mixed amid hopes China will relax some Covid restrictions as the country vaccinates more elderly and reported a decline in infections. 

Let’s get right to it!

Hong Kong, Chinese Stock Markets Rally

The Hang Seng index in Hong Kong rallied 5.2% overnight while mainland China’s Shanghai Composite jumped 2.3%, and the Shenzhen Component rose 2.4%. 

The gains came after Chinese health authorities reported an increase in senior vaccination rates in the country. 

Authorities say 65.8% of people “over age 80” have received booster shots, a key step toward lifting restrictions. 

The government also reported a decline in Covid infections from Sunday to Monday, the first in more than a week. 

The news prompted hope the government will lift restrictions that caused mass protests over the weekend. 

Chinese stocks listed in the U.S. are also rallying ahead of the open. 

Alibaba (BABA) is up 5.1%, JD.com (JD) is rising 6.8%, and Pinduoduo (PDD) is up 5.3%.

Oil Prices Jump On Hopes of Easing Restrictions In China

Oil prices are rebounding today on those hopes of easing Covid restrictions in China. 

West Texas Intermediate crude futures are up 2% to just under $79 bbl while Brent crude futures are up 2.5% to over $85 bbl. 

Expectations for another OPEC+ production cut are also supporting prices. 

The group meets again December 4 and analysts have suggested weaker demand out of China could prompt another cut. 

Upcoming Data

The September S&P Case-Shiller home price index is set to be released momentarily.

That index is expected to show another sharp decline in home prices as mortgage rates surged. 

Prices dropped 9.8% in August. 

The Federal Housing Finance Agency also releases its home price index for September at the same time. 

Then, the University of Michigan’s November consumer confidence index will be out at 10:00 a.m. ET. 

That index is expected to fall to 100 from 102.5 in October. 

BlockFi Files for Bankruptcy

Crypto firm BlockFi filed for Chapter 11 bankruptcy protection on Monday. 

This comes after the collapse of crypto firm FTX and BlockFi listed an outstanding $275 million loan to FTX US in the filing.

The firm previously halted withdrawals, saying it had “significant exposure to FTX and associated corporate entities that encompasses obligations owed to us by Alameda, assets held at FTX.com, and undrawn amounts from our credit line with FTX.US.”

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