Shares and oil have risen as China relaxed its isolation rules

LONDON, June 28 (Reuters) – Global stocks rose on Tuesday, while oil prices remained stable, boosting strong growth and a rebound in demand for commodities following China’s decision to ease some isolated requirements for international visits.

China has halved the segregation time for incoming passengers, one of the world’s toughest Govt-19 restrictions, blocking cross-border travel and allowing international flights to operate at just 2% of pre-disease levels. read more

Asian stocks rose after the announcement and European stocks remained green, sending MSCI’s benchmark benchmark global stock. (.MIWD00000PUS) In positive territory and on the path to its fourth consecutive daily gain.

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China’s strict zero-Govt rules are dragging its feet in the global secondary economy, but easing travel restrictions and reopening major cities from lockdowns have boosted hopes that growth will get back on track.

Honey Redha, Multi Asset Portfolio Manager, Pinebridge Investments, said: “This is a good development.

“It’s not enough to lead to a very strong recovery, but it’s definitely going to be increasingly positive.”

Wide index of Asia-Pacific equities of MSCI (.MIAP00000PUS) Hong Kong’s Hong Cheng was up 0.4% (.HSI) Converts previous losses to 0.9% and gains China CSI 300 index (.CSI 300) Closed over 1%. China Tourism Stocks (.CSI930633.) Received over 5.5%.

Pan-European STOXX 600 (.STOXX) Oil and gas rose 0.7%, a two-week high (.SXEP) And mining (.SXPP) Commodity prices benefited in the hope that demand for essential metals from China would rise again.

The US stock index futures were up 0.5% with the S&P 500 e-minis, but the outlook for emerging market stocks remains challenging as central banks stubbornly try to balance high inflation with slower growth.

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“Equity markets will not go wild until central banks shift their discourse to a low hawk position,” said Salman Paik, portfolio manager at Cross Asset Solutions at Unigene.

“Unfortunately for many investors, such a precursor will not happen until the economy slows down enough to keep inflation on a steady downward trajectory.”

The European Central Bank’s forum on central banking in Cindra continued on Tuesday, with ECB President Christine Lagarde confirming plans to raise interest rates from next month.

The ECB will gradually move when rates begin to rise, but will act decisively if there is any decline in medium-term inflation, especially if there are signs that the anchor of inflation is declining. read more

Germany’s 10-year yield rose 11 basis points to 1.658% as investors focused on inflation risks and monetary tightness.

The euro changed slightly against the dollar following Lagarde’s initial comments, while China’s sea yuan rose 0.1% after Beijing’s move to ease travel restrictions.

The dollar index, which measures the greenback against the basket of six coins, changed slightly at 103.99.

Oil prices have risen since China eased its isolation rules, and G7 leaders have agreed to study placing price caps on Russian oil and gas imports as they focus on already tight supply. read more

US crude was up 1.9% at $ 111.65 a barrel. Brent crude was up 2.3% at $ 117.73 a barrel.

“Tight supply news (oil) strengthened the market,” said analysts at the Commonwealth Bank of Australia. “Political unrest could cut supplies from two second-tier producers, Ecuador and Libya. Then there is the proposed price cap on the G7’s Russian oil.”

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Gold rose 0.1% to $ 1,824 an ounce.

Bitcoin rose 1.4% to trade at $ 20,989, down from $ 17,588.88 earlier this month.

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Report by Samuel Indick in London and Julie Ju in Hong Kong; Editing by Jacqueline Wong, William McLean

Our standards: Thomson Reuters Trust Principles.

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