Five Things You Need to Know to Start Your Day: Europe
Get up to speed with what the markets are monitoring
Good morning. China’s stunning stock rally continues. France mulls a new corporate tax. Car companies urge the European Union to stick with plans to halt combustion-engine sales. Here’s what people are talking about.
Chinese stocks extended one of their most remarkable turnarounds in history. The CSI 300 Index — which lost more than 45% of its value from a 2021 high through mid-September — jumped as much as 6.5% on Monday, the most since 2015. It’s set for a technical bull market as traders rushed to buy shares in the last session before a week-long holiday. Iron ore led metals higher on the China optimism, marking a sharp contrast with falling Japanese stocks. Shigeru Ishiba’s surprise victory in the ruling party’s leadership race wrongfooted investors who had bet on a boost from more monetary stimulus from his rival. On the subject of contrarian bets to watch, Lombard Odier’s chief investment officer Michael Strobaek is sticking with his decision to sell all of the firm’s China stock and bond holdings. He said he doesn’t think the stimulus “will have a lasting sustainable impact on either the stock market or the economy.”