Chinese stock exchanges in the spotlight, with the Shanghai stock exchange reopening after being idle for a week, on the occasion of the Chinese New Year celebrations. Focus in particular on the CSI 300 index, which represents the stocks of the largest Chinese companies, which is about to enter the bull market phase, up about 20% from the recent lows reached at the end of October. On the CSI 300 list, BYD’s rallies of over +6% stand out; buy also on Lens Technology (up to over +15%) and Yunnan Energy New Material, which jumps by around 10%.
China’s CSI 300 stock index climbs up 19.18% from the lows tested on October 31, according to Refinitiv data published by CNBC, after closing its last session prior to the Chinese New Year holidays at 4,181.53 on 20 January last.
The Nikkei 225 index of the Tokyo stock exchange was slightly positive, closing up by 0.19%.
The Hong Kong Stock Exchange was down sharply, dropping by around 2.34%, while the Sydney and Seoul Stock Exchanges fell by 0.16% and 1.22% respectively.
Also in the bull market is the benchmark index of the Taiwan stock exchange, the Taiex, which advanced today up to +3.6%, reporting the best session since last November 11th.
Intraday gains took the Taiex 21% above the lows tested in October. Taiwan Semiconductor Manufacturing and MediaTek stocks above all affected the rise in the Taiwan stock market.
Wall Street futures fell slightly after last week’s gains, which saw the Nasdaq, S&P 500 and Dow Jones jump 4.3%, 2.5% and 1.8% respectively.
At 7.25 am Italian time, futures on the Dow Jones fell by 0.28%, those on the Nasdaq were down by 0.41%, while those on the S&P 500 fell by 0.32%.
Great expectations for the meeting of the Fomc, the monetary policy arm of the Fed led by Jerome Powell, scheduled to meet tomorrow 31 January to end the day after tomorrow 1 February, when it will announce its decision on rates on US fed funds. The market is betting on an increase of 25 basis points.
In the last meeting of 2022, the Fed raised rates by 50 bp last month, bringing them in the range between 4.25% and 4.5%, and slowing the pace of monetary tightening after four consecutive 75 bp hikes .