A gauge of global equity markets rebounded and U.S. Treasury yields rose on Tuesday as a relaxation of China’s tech and COVID-19 crackdowns, as well as high U.S. retail sales in April, signaled that economic development was strengthening.
US retail sales rose 0.9% in April, while data for March was revised higher to show sales advancing 1.4% instead of 0.7% as previously reported.
US industrial production rose 1.1% in April, with the manufacturing capacity utilization rate at its highest since 2007. The Federal Reserve will raise the federal funds rate at each of its next two policy meetings. The dollar eased for a third straight day, pulling back from a two-decade high against a basket of major currency peers.
Oil hit its highest in seven weeks, supported by the European Union’s push for a ban on Russian oil imports. China achieved the long-awaited milestone of three straight days with no new COVID-19 cases outside quarantine zones. The milestone could lead to the beginning of the lifting of the city’s harsh lockdown.
Markets in China and Hong Kong have risen in hopes that Beijing’s anti-tech campaign will be eased. The CSI300 Index (.CSI300) in China soared 1.25 percent, while the Hang Seng Index (.HSI) rose 3.27 percent.