European Shares Climb As China Scraps Inbound Quarantine Rules
European stocks opened higher on Tuesday as trading resumed after a long Christmas holiday weekend. U.K. markets remain closed for a public holiday.
The pan-European STOXX Europe 600 index was up half a percent at 429.65 after China decided to lift the mandatory quarantine rules for international travelers from January 8 in a major shift from its zero-COVID policy.
The German DAX climbed 0.8 percent and France’s CAC 40 index jumped 1.1 percent on hopes for a recovery in the world’s second-largest economy.
China-exposed luxury firms LVMH and Kering both rose around 2 percent on hopes of improved Chinese demand.
Skanska AB, a Swedish construction and development firm, gained 1.1 percent after it signed a $56 million worth contract with AECOM to repair Norfolk Naval Shipyard berths in Portsmouth, Virginia, USA.
Swiss fintech Leonteq tumbled nearly 4 percent after lowering its profit expectations for 2022, citing reduced client demand.
Elon Musk Becomes First Man Ever To Lose $200 Bln
Elon Musk becomes the first man ever to lose $200 billion in wealth, according to Bloomberg.
The CEO of Tesla (TSLA), SpaceX and Twitter is currently worth $137 billion, according to the Bloomberg Billionaires Index. However, at its peak, Musk touted a net worth of $340 billion. He currently sits at second place on the list of the world’s richest behind LVMH Chairman Bernard Arnault.
A key part of Musk’s net worth is from his stake in Tesla (TSLA). Tesla’s stock has more than halved in value this year due to a sell-off after Musk’s $44 billion acquisition of social media company Twitter. Tesla’s stock has also been impacted by its disappointing quarterly results as well as ongoing disruptions at one of its factories in Shanghai.
Tesla shares were trading at $340.79 on April 13, the day before Twitter revealed that Musk made a hostile bid worth $43.4 billion. Since then, the Tesla share price has slumped over 60% and is currently trading below the $125 mark.
Meanwhile, Arnault is currently worth $162 billion. He has only lost a mediocre $15 billion in the year-to-date period. Arnault was the first European to top Bloomberg’s list of the world’s richest people.
Arnault, through holding vehicles and family trusts, owns a little over 60% of LVMH’s voting share class, according to SEC filings.
Woman dies in Weld County Jail, authorities say
A woman incarcerated in the Weld County Jail died Monday after experiencing trouble breathing, authorities said.
The woman, who has not been publicly identified, complained of trouble breathing around 6:40 a.m., a Greeley police spokesman said in a news release on behalf of the 19th Critical Incident Response Team, which is investigating the woman’s death.
Deputies administered CPR and called for an ambulance, the news release said. The woman was taken to a hospital where she died at 7:39 a.m.
Additional information was not immediately available.
European Economic News Preview: Eurozone Final Manufacturing PMI Data Due
Results of the purchasing managers’ survey for the manufacturing sector from the euro area and other major Eurozone economies are the top economic news on the opening weekday of the new year.
At 3.15 am ET, Purchasing Managers’ survey results from Spain are due. The manufacturing PMI is forecast to rise to 46.2 in December from 45.7 in the previous month.
At 3.45 am ET, Italy’s manufacturing PMI survey data is due. Economists forecast the indicator to improve marginally to 48.5 in December from 48.4 in the previous month.
At 3.50 am ET, S&P Global publishes France’s final factory PMI survey report. The final reading is seen at 48.9 in December, in line with flash estimate and up from 48.3 in November.
At 3.55 am ET, Germany’s final manufacturing PMI is due. Economists forecast the factory PMI to match the flash estimate of 47.4 in December versus 46.2 in the previous month.
At 4.00 am ET, S&P Global is scheduled to release Eurozone final PMI survey results. The flash estimate showed that the index climbed to 47.8 in December from 47.1 in November.
Chicago Business Barometer Rebounds More Than Expected In December
A report released by MNI Indicators on Friday showed a bigger than expected slowdown in the pace of contraction in Chicago-area business activity in the month of December.
MNI Indicators said its Chicago business barometer climbed to 44.9 in December from 37.2 in November, although a reading below 50 still indicates a contraction. Economists had expected the index to rise to 41.2.
The bigger than expected rebound came after the Chicago business barometer fell to its lowest reading since the 2008/09 global financial crisis, excluding the 2020 pandemic shock.
The report showed the new orders index jumped to 44.1 in December from 30.7 in November, reflecting a number of last-minute and year-end blanket orders.
The production index also rose to 39.2 in December from 35.9 in November, although MNI Indicators said material and staff shortages were cited as hampering production.
Meanwhile, MNI Indicators said the employment index slid to 40.8 in December from 47.1 in November, as firms struggled to replace employees that had retired or changed workplaces.
The report also showed the prices paid index fell to 64.1 in December from 66.2 in November, dropping to its lowest level since September 2020.
MNI Indicators said some firms are expecting higher labor costs, whilst others highlighted lower demand and falling oil and steel prices pushing prices down.
Oil Prices Rise Despite Growth Concerns
Oil prices were seeing modest gains on their first trading session of 2023.
Benchmark Brent crude futures rose 0.4 percent to $86.23 a barrel, while WTI crude futures were up half a percent at $80.67.
Prices recovered from their early weakness after the International Monetary Fund’s managing director warned a third of the world’s economies may slide into a recession in 2023.
A weak manufacturing activity survey from China, the world’s largest crude importer and second-largest oil consumer, also weighed on prices earlier in the session.
China’s factory activity deteriorated further at the end of the year as COVID-19 containment measures together with softer demand forced manufacturers to downsize production, a survey showed earlier today.
The Caixin manufacturing Purchasing Managers’ Index edged down to 49.0 in December from 49.4 in the previous month, remaining below the neutral 50.0 mark for the fifth successive month.
The official PMI survey results published over the weekend also showed that China’s manufacturing and services sectors weakened the most since early 2020.
On the positive side, China’s state media played down the severity of the COVID-19 wave surging over the country ahead of a briefing to the World Health Organization later in the day.
People’s Daily, the official newspaper of the Communist Party, cited several Chinese experts as saying the illness caused by the virus was relatively mild for the vast majority of people.