The situation in China is becoming more and more worrying and in this atmosphere, European equity markets are expected to decline on the last Thursday of 2022. Thus, the Eurostoxx 50 opens at 3,808.82 points (-0.63%); the CAC 40 at 6,510.49 points (-0.61%); the DAX 40 at 13,925.60 points (-0.50%); the FTSE 100 at 7,497.19 points (+0.32%); the SMI at 10,812.67 points (-0.24%); the AEX at 694.84 points (-0.89%); the BEL 20 at 3,708.49 points (-0.25%); the IBEX 35 at 8,258.50 points (-0.14%); the DJIA at 32,875.71 points (-1.10%); the Nasdaq at 10,213.29 points (-1.35%); the S&P 500 at 3,783.22 points (-1.20%) and the Nikkei 225 at 26.093.67 points (-0.94%).

On the exchange side, the change from the close in New York indicates that EUR/USD opens at 1.0623 (+0.09%), EUR/JPY at 142.03 (-0.49%), and USD/JPY at 133.71 (-0.58%).

No major economic indicators are due to be published this Thursday in France. The business agenda is also empty.

European equity markets are expected to open lower on Thursday as investors continue to analyze the impact of the easing of health restrictions in China on global growth prospects, as the number of new Covid-19 cases soars in the country. Around 7:30am, the CAC 40 futures contract lost 23.4 points, or 0.4%, according to data from the IG Markets broker. The DAX 40 contract fell by 54 points, or 0.4%, while the FTSE 100 contract lost 30.8 points, or 0.4% as well.

Investors need to deal with the consequences of China's reopening and rising interest rates around the world. The lifting of quarantine measures in China is expected to have an impact on the global economy and markets, in a context of slowing growth and rampant inflation.

The New York Stock Exchange widened its fall late Wednesday to finish sharply lower, as investors assessed the evolution of the health situation in China and the risks of a recession in 2023. Among the indicators published on Wednesday, promises to sell homes in the United States fell for the sixth month in a row in November, while the rise in borrowing rates since spring has put a brake on the real estate market. In Asia, equity markets pulled back on Thursday. The Nikkei index ended down 0.9% in Tokyo. The Shanghai Composite Index lost 0.5% at the end of trading and the Hang Seng dropped 1.1% in Hong Kong.

U.S. Treasury bond yields did not change much on Thursday morning, after long-term interest rates rose Wednesday evening. The 10-year rate ended at its highest level in seven weeks, in a volatile market during the holiday season, marked by the absence of major catalysts, as investors assess the outlook for monetary policy and economic growth in 2023. Around 7:30am, the 10-year US Treasury rate fell nearly 2 basis points to 3.868%. The 2-year stock gained 1 basis point, at 4.365%.

The euro appreciated slightly against the dollar on Thursday morning, but the single currency and the dollar fell sharply against the Japanese currency. Concerns about the resumption of the epidemic in China are driving currency traders to turn to the yen, which is considered a safe currency.

Oil prices fell in Asia on Thursday morning, amid an uncertain outlook. While China's plans to reopen have prompted a wave of optimism about crude demand, investors are also worried that the reopening of the country's international borders will lead to a new surge in Covid cases around the world. At 7:25am, the March contract on North Sea Brent sold 64 cents to $83.35 per barrel, while the February contract on soft crude (WTI) listed on Nymex fell by 61 cents to $78.35 per barrel.