The good news with China’s reopening is that it should boost global growth.

China and Covid

The bad news with China’s reopening is that it will not only boost global growth, but also energy and commodity prices - hence inflation, the interest rate hikes from central banks and potentially the global Covid cases – which could then give birth to a new, and a dangerous Covid variant, which would, in return, bring the restrictive Covid measures back on the table, and hammer growth.

Note that the reasoning stops here right now, the risky markets are painted in the red, but we could eventually go one step further and say that if the Chinese reopening hits the global health situation – hence the economy badly, the central banks could become softer on their rate hike strategies. But no one is cheery enough to see silver lining anywhere.

This year really needs to end, now!

European and US markets

So, Wednesday was marked by further selloff across European and US markets. The S&P500 slid 1.20% and Nasdaq lost another 1.32%.

The DAX struggles to keep its head above the 50-DMA, but the FTSE 100 index is about to close the year with slight gains! Why?

Also Turkish BIST 100 shot up to 188% at some point this year, making investors wonder whether Turkish stocks good performance could last and what happens if the lira dropped.

Watch the full episode to find out more!

• 0:00 Intro
• 0:34 China reopening starts worrying
• 2:33 Why FTSE 100 outperformed in 2022?
• 5:00 What made Turkey’s BIST 100 rally 188%? Could it last?
• 7:37 Chinese stocks could outperform next year

Ipek Ozkardeskaya

Ipek Ozkardeskaya has begun her financial career in 2010 in the structured products desk of the Swiss Banque Cantonale Vaudoise. She worked at HSBC Private Bank in Geneva in relation to high and ultra-high net worth clients. In 2012, she started as FX Strategist at Swissquote Bank. She worked as a Senior Market Analyst in London Capital Group in London and in Shanghai. She returned to Swissquote Bank as Senior Analyst in 2020.

#FTSE #BIST #outperform #China #Covid #reopening #inflation #expectations #energy #mining #stocks #SPX #Dow #Nasdaq #investing #trading #equities #stocks #cryptocurrencies #FX #bonds #markets #news #Swissquote #MarketTalk #marketanalysis #marketcommentary

_____

Learn the fundamentals of trading at your own pace with Swissquote's Education Center. Discover our online courses, webinars and eBooks: https://swq.ch/wr

_____

Discover our brand and philosophy: https://swq.ch/wq

Learn more about our employees: https://swq.ch/d5

_____

Let's stay connected: LinkedIn: https://swq.ch/cH