, with looming US inflation data a reminder of how surging prices and interest rates have fundamentally shifted investor thinking over the past 12 months.
The Stoxx index of 600 European companies was up 0.2%, still down more than 12% for the year after gaining 22% in 2021. This year’s shift from negative to a positive correlation between stocks and bonds — meaning both now fall or rise in tandem rather than moving in opposite directions — is also likely to stay for now Osman said.
It will give further indications of whether the rise in prices is continuing to moderate, even if more Fed rate rises are expected in 2023. In Asia, China stocks eased 0.3%, while Hong Kong stocks fell 0.4% as China grapples with soaring Covid-19 infections, in the wake of Beijing dismantling its strict zero-Covid policy to contain the virus.