Stock markets around the world are in the green to start the new trading week. Overnight the Hang Seng rallied 2.7% and the Nikkei climbed 1.2%. In Europe today, the Dax is up 0.7% and the FTSE is down 0.3%. US index futures are all up about 0.5%, building on Friday’s gains of 1.2%-1.3% for US indices.
Stocks continue to climb despite disappointing news out of China where export growth was less than half of what the street was expecting (7.0% vs street 14.8%). Hopes of a wider reopening from COVID lockdowns that helped to boost markets on Friday were dampened over the weekend and Apple (down 1.2% premarket) indicated that recent lockdowns are negatively impacting iPhone production. China-sensitive Copper is down 1.9%, while WTI crude oil is down 0.6%. Natural gas, on the other hand, is up 10.4% with winter home heating season approaching.
Investors continue to position themselves ahead of the main event for this week, tomorrow’s US midterm elections. The second most notable event are consumer inflation reports for the US and China which are due on Thursday. Central banks are quiet this week in terms of meetings but active in terms of speeches with three members of the US FOMC and ECB President Lagarde talking today, Swiss National Bank Chair Jordan talking Tuesday, and Bank of Canada Governor Macklem speaking on Thursday.