Beijing dropped pandemic border controls on Sunday, opening its perimeter that had been all but shut since the start of the COVID-19 pandemic. This move is likely to boost the country's economic activity, which would have a wider impact given China's importance as a regional growth driver and as a key market for European exporters.
In Europe, German industrial production grew 0.2% in November, an improvement from the revised drop of 0.4% the prior month. However, the outlook still looks grim, with four out of ten German companies expecting business to shrink in 2023, according to a survey by the German Economic Institute.
Oil Prices Rise on China's Reopening, US Bank Earnings in Focus
Oil prices rose on Friday, helped by the news of the reopening of China's borders, boosting the outlook for fuel demand growth in the world's largest crude importer. Brent and WTI tumbled more than 8% last week, their biggest weekly declines at the start of a year since 2016, on global recession concerns.
In corporate news, the banking sector is likely to be in focus this week as the main US lenders start releasing their fourth-quarter earnings, including Wells Fargo, Citigroup, Bank of America, and JPMorgan, on Friday.
