Europe points to red in the wake of Xi’s speech. Asia is closed except for Shanghai
Europe points to negative terrain and Asia closes mixed, on a day when markets have the opportunity to respond to Xi Jinping’s speech.
After the Asian session, it is time for investors in Europe to respond to the speech of the Chinese president, during the beginning of the Communist Party Congress. Today will also be marked by the market’s keen eyes on new developments in Downing Street’s fiscal and financial policy.
Futures contracts on the Euro Stoxx 50 were down 0.3%.
In Asia, for China, the session ended mixed: The Hang Seng Tech Index was down 0.3%, while the Shanghai Index was up 0.18%. In South Korea, Topix is down 0.9%, while Japan’s Topix is down 0.93%, while the benchmark Nikkei is down 1.21%.
During the opening of the CPC congress, Xi Jinping did not change his talk about the “zero-covid” policy or about the conduct of policy regarding the real estate sector, which is clearly deteriorating.
Nevertheless, the Chinese president gave a message of hope, noting that China’s global power had increased. The head of state also warned of “dangerous storms” that may await us in the future.
Economists polled by Bloomberg estimate that the country is expected to grow just 3.3% this year, the slowest pace in 40 years.
During the session, it will also be time for investors to stay alert to new developments in Liz Truss’ “mini budget”. According to a tweet by Stephen Swinford, a journalist for The Times, the British Prime Minister has already signed off on deferring tax cuts until 2024.
“Wannabe internet buff. Future teen idol. Hardcore zombie guru. Gamer. Avid creator. Entrepreneur. Bacon ninja.”