China Reopening Boosts European Shares to Highest Level Since May 2022

European markets soared to new heights at the start of the week, with sentiment bolstered by China's continued economic recovery. Investors are optimistic that the global economy is on the upswing, and are eager to capitalize on rising markets.

The Stoxx 600 index closed higher, with most sectors and bourses in positive territory. Technology stocks led the way, followed by travel and leisure stocks.

Asian markets traded higher overnight as Hong Kong and mainland China resumed quarantine-free travel over the weekend, signaling the end of the zero-Covid policy which had kept borders effectively closed for nearly three years. This is seen as a positive step towards normalcy and is expected to boost trade and economic activity in the region.

U.S. stocks rose in early trading after the major averages notched their first big rally of the new trading year. This was a welcome relief for investors after a tough end to 2018.

The Stoxx 600 index, which covers European stocks, closed 0.9% higher on Wednesday, taking it to its highest level since early May 2022.

European economies are expected to benefit significantly from China's border re-opening, with travel stocks expected to see a 2.5% gain. This is good news for European businesses and consumers who have been eagerly awaiting the re-opening of China's borders.

Germany's DAX index rose 1.25% after industrial production figures rose more than expected in November. This was good news for the German economy, which has been struggling in recent months.

France’s CAC 40 index rose 0.7% while the U.K.’s FTSE 100 index climbed 0.3%.

The Swiss National Bank has reported a loss of 132 billion Swiss francs ($143 billion) for the 2022 financial year. This figure is preliminary and may be subject to change.

The Swiss National Bank has announced that it will not be making its usual payouts to the Swiss government and member states, and that payments to shareholders will also be affected.

Of the losses, 131 billion francs came from its foreign currency positions and 1 billion from its Swiss franc positions.

Karsten Junius, chief economist at Swiss bank J.Safra Sarasin, told CNBC that the central bank’s losses would not alter its monetary policy. He expects the central bank to raise interest rates by another 100 basis points this year, to 2%.

At market open, the three major indexes were up as investors attempted to extend Friday’s rally.

At 9:30 a.m., the Dow Jones Industrial Average was up 0.4%. The S&P 500 and Nasdaq Composite were both up 0.5% and 0.9%, respectively.

Unemployment in the eurozone remained at a record low in November, despite slowing economic growth in the region.

The unemployment rate remained at 6.5% in November, according to data from Eurostat. This represents a total of 10.97 million people.

The figure is the lowest it has been since records began in 1998, and is in line with economist forecasts published by The Wall Street Journal. This is good news for the economy, as it indicates that growth is still strong despite some recent turbulence.

According to FactSet, as reported by Reuters, unemployment is expected to rise in the first half of 2023 as recessionary pressures increase. The unemployment rate is likely to hit 7% by the middle of the year.

The U.K. arm of German discount supermarket Lidl reported sales were up 24.5% in the four weeks up to Christmas Day compared with the previous year. This is a significant increase and shows that the company is doing well.

Lidl saw a significant increase in shoppers in the week leading up to Christmas, with over 1.3 million more customers than the previous year. This is a clear indication that the discounter is becoming more and more popular with shoppers looking for great deals on quality products.

The store said it expects more customers to switch from other supermarket groups in 2023 as consumers continue to feel the effects of the cost-of-living crisis. This is because many people are struggling to make ends meet and are looking for ways to save money.

Alibaba shares rose 5.8% at the open in Hong Kong, after Jack Ma reportedly gave up control of Ant Group. Ant Group is an affiliate of Alibaba, which holds a 33% stake in the fintech company.

Other technology stocks were also up, with NetEase rising 1.92% and Tencent gaining 1.49%.

Casino stocks rose in Hong Kong's first trading session after the city resumed quarantine-free travel with mainland China. MGM China gained 4.52%, Wynn Macau rose 4.25%, Sands China climbed 3.89% and SJM Holdings rose 2.14%.

Consumer stocks helped drive the market higher in Asia today. Anta Sports rose 2.57%, Haidilao rose 2.9%, Xiabuxiabu Catering jumped 6.36% and Budweiser Brewing Company APAC rose 0.37%.

According to Goldman Sachs, shares of legacy automakers and parts manufacturers will attract new investors as they transition toward electric vehicles and green technologies. This shift will provide opportunities for these companies to tap into new markets and grow their businesses.

As traditional auto companies increasingly focus on developing new carbon-neutral technologies, they are likely to see a corresponding increase in their inclusion in ESG funds and a boost to their share prices, according to the Wall Street bank.

According to the investment bank, there are 13 stocks that will benefit from the new trend. One of these stocks is expected to have over 100% upside.

Mark Mahaney, a top tech analyst, is optimistic about tech stocks after a difficult year in 2022. He believes that the sector is poised for a rebound and that there are many opportunities for investors. Mahaney is a respected voice in the tech community, and his positive outlook is sure to give confidence to many investors.

The analyst recommends that investors remain selective and reveals three top picks for 2023.As a Pro subscriber, you can read more articles on our site. This gives you access to exclusive content that you can't find anywhere else.

BofA has added a number of biotechnology stocks to its list of top picks for the first quarter. Biotech is a sector that is currently very popular on Wall Street, and BofA believes that these stocks will perform well in the coming quarter.

The bank has selected biotech stocks and some medical technology companies as part of its thematic investing picks on themes related to a "transforming world."

European markets are set to open higher at the start of the new trading week.

According to data from IG, the U.K.'s FTSE 100 index is expected to open 24 points higher at 7,723, Germany's DAX 79 points higher at 14,689, France's CAC up 32 points at 6,893, and Italy's FTSE MIB up 91 points at 24,271.

Data will be released on Thursday for the euro zone unemployment rate for November, French trade data for November, and German industrial production for the same month.