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The Bid Extends

EQUITIES

The combination of positive spill over from Friday’s U.S. equity trade (whereby the S&P 500 added 2.5% on the day, providing the firmest weekly gains observed for the index since late ’20), the unwind of some COVID-related restrictions in the Chinese cities of Beijing & Shanghai and the deployment of fresh support measures for Shanghai’s economy buoyed risk appetite in Asia. This extended what some perceive to be a bear market rally, while month-end rebalancing flows provide another potential supportive factor for U.S. equities. The Hang Seng & the Nikkei 225 added ~2.0% against this backdrop, while e-mini futures print 0.2-1.0% firmer on the day, with the NASDAQ 100 contract leading the bid there.

MNI London Bureau | +44 0203-865-3809 | anthony.barton@marketnews.com

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