European stocks kick off the week on last week’s positive vibes, adding more gains to their best ever start to a year.
The DAX extended its advance above the 15000 mark, to the fresh highs since before the war in Ukraine started.
And the French CAC40 took over the 7000 resistance, and is only around 4% below the 2022 peak.
The recovery in European stocks is impressive, yet, could it last?
On the data front, China grew 3%, well below the government’s 5.5% target last year, but the Q4 rebound was well above market expectations. Retail sales contracted significantly less than expected as well, while unemployment unexpectedly fell, giving signs that the end of Covid zero measures are feeding into the data.
In the FX, the US dollar was better bid yesterday, but price rallies could be good to sell, especially against oil and commodity currencies, that should extend rebound on Chinese reopening story.
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