Hong Kong Stocks Rebound on China's Pledge, European Markets Cautious Amid Economic Data and Earnings

zForex

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Aug 15, 2022
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On Tuesday, Hong Kong stocks experienced a strong rebound, with the Hang Seng index surging over 3%. This surge was triggered by China's Politburo, which pledged to promptly "adjust and optimize policies" to address issues in its struggling property sector. Additionally, Beijing's top decision-making body promised to prioritize stable employment as a strategic goal and introduced other measures to stimulate consumption and tackle debt risks. This commitment came after disappointing economic data surfaced last week, prompting renewed calls for policy support to bolster growth.
Meanwhile, European markets are expected to open cautiously on Tuesday as investors carefully evaluate economic data and corporate earnings from the region. There will be a keen focus on various economic reports, such as the German business climate and British business optimism index data. Notably, companies like LVMH, Unilever, Deutsche Borse, Randstad, and Italgas are slated to report their earnings on the same day.
Recent data indicated a slowdown in business activity in France, Germany, and the U.K. during July, adding to recessionary concerns across Europe. Additionally, investors will be keeping an eye on the Eurozone bank lending survey on Tuesday, which can offer insights into borrowing trends ahead of anticipated rate hikes by both the Federal Reserve and the European Central Bank.
The week remains busy for global investors, with a series of corporate earnings announcements and central bank meetings in focus. The European Central Bank is scheduled to meet on Thursday, where policymakers are expected to announce a 25 basis point rate hike and provide guidance on their efforts to combat inflation in the final stages.​