Stocks to be affected by Fed moves

Despite a rise in Chinese stocks due to the relaxation of Covid-19 restrictions there, stock futures traded lower on Monday as investors kept a close eye on the Federal Reserve’s interest rate policy.

The likelihood of more robust growth in the second-largest economy in the world was reducing demand for sovereign debt and driving rates higher. While other analysts also noted that technical considerations may stymie a rebound that has seen the S&P 500 rise 13.8% from its 2022 low reached in mid-October, the rise in benchmark borrowing costs was aiding in restraining stock demand.

Asia’s benchmark indices rose as local Chinese officials announced additional measures to relax the tight Covid-19 regulations that have stifled the nation’s economic growth. These measures came from Hong Kong and mainland China.
“We have this happy congruence with more and more easing in Covid policy, ” Saxo Markets Hong Kong said.

This increases the likelihood of a stronger Chinese economic recovery in the upcoming year. Nomura warned that the optimism might not hold. It went on to explain that if China kept opening up, caseloads might soar and death rates might rise as a result. Chinese markets will continue to experience volatility depending on Beijing’s response.

“This is exactly what we saw in some other markets globally in their initial phases of reopening.”

The iPhone manufacturer reportedly advanced plans to move some of its production outside of China, which has traditionally been the dominating nation in the supply chain, which caused Apple shares to decline 0.2% in premarket trading.

The premarket gain for Credit Suisse’s New York-listed shares was 5%. Among the investors ready to put $1 billion or more into Credit Suisse’s new investment bank are the crown prince of Saudi Arabia and a private equity firm in the United States managed by the former CEO of Barclays.

Another indication of how pilots are pushing the now-booming airline business for greater pay and other benefits is that Delta Air Lines is offering raises to pilots totalling at least 34% over the course of a proposed pact.

According to the company’s most recent production schedule, Tesla reduced Model Y production at its Shanghai factory in December by more than 20% compared to November, according to Reuters, which cited unnamed sources. According to the study, it was unable to pinpoint the cause of the decreased production right away.

According to XPO Logistics’ SEC filing, the weak European capital markets are a major reason why company doesn’t expect to sell its European business anytime soon. After hours, shares decreased 2%.