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China Stock Skepticism Grows Despite Rally

Good morning. Goldman Sachs touts the Chinese stock rally. Oil falls as Middle East tensions linger. A euro-area policymaker joins the chorus for a possible interest-rate cut this month. Here’s what people are talking about.

Asian stocks advanced on Monday after stronger-than-expected US payroll data underscored the health of the world’s largest economy. On Friday, the S&P 500 and Treasury yields both rose as traders trimmed bets on Federal Reserve rate cuts. European equity futures are a tad higher, while US contracts are little changed. The latest risk rally will be tested on Tuesday, when mainland China markets reopen after a week-long holiday. Goldman Sachs upgraded its call on Chinese stocks to overweight, as it joined a camp of optimists that are touting the positive impact of Beijing’s stimulus blitz.