Financial insights for investors & traders: Economic reopening plays, iron ore, oil rally on China easing restrictions. What's ahead

Financial insights for investors & traders: Economic reopening plays, iron ore, oil rally on China easing restrictions. What's ahead

Jessica Amir
Market Strategist

Summary:  Today's financial insights for investors & traders:- Economic reopening plays, iron ore, copper and oil rally on China easing restrictions. Coal trades back at record highs and stocks exposed to China rip higher. Fortescue Metals shares are back in record high territory. Here are the Saxo equity baskets and stocks to watch, plus what's ahead this week, in this six minute video.

Monday December 5 2022

Economic reopening plays and commodities will be in focus this week with China easing some COVID restrictions

On Monday, Shanghai and Hangzhou scrapped PCR testing to enter public venues including on public transport and to enter parks. Shanghai and Hangzhou joined other top-tier cities, Beijing, Shenzhen and Guangzhou in relaxing curbs after mass protests took place against China’s stringent policies last week.

In equites, which are forward looking – focus will be on stocks exposed to a potential turnaround in consumption, especially in cities with easing restrictions. Reflecting on Saxo's equity baskets, the best returns in markets on Friday, over the week, and month, have been in in Saxo’s China Consumer and Technology basket.  In Saxo basket you see stocks like Nio, Alibaba are up 40% on the month, Tencent is up 24%, while consumer spending giant is up 50%. Recall that Hangzhou is home of Alibaba so its rally continue with restrictions easing there from today.

Meanwhile Commodities will also be a focus will be on oil with its trading back above US$81, and posting its biggest weekly gain on hopes that demand will increase from China. OPEC+ met at the weekend they committed to their targets for the rest of 2032. We think oil volatility will likely pick up this week with Venezuela’s top refinery halting gas output after a malfunction while further cities in China may also ease some restrictions.

Australia’s share market, home of some of the commodity kings, hit a new high on China easing restrictions

The benchmark index, the ASX200 (ASXSP200.1) hit a new seven month high on Monday and momentum could continue with China’s easing some restrictions today. The iron ore (SCOA) price rose 2.3% move the steel ingredients’ price back over back above $100 for the first time since August, on hope China could increase demand. The iron ore price is up 38% from its October low. This is benefiting benefit forward earnings of BHP, Rio, Fortescue and Champion Iron with all their shares trading higher today, with those most exposed to China seeing the biggest rallies. Fortescue shares are up 8% taking the miner back to record highs. To get more inspiration on stocks exposed to China in commodities, use Saxo’s Australian Resources basket

Foreign Exchange traders will be busy this week; RBA meets, before the Fed next week

The US dollar is higher against most G-10 pairs, with the New Zealand dollar leading risk currencies lower. Why? The market is focused on the Fed’s meeting next week after hotter than expected US jobs report. Still, the US dollar, against most currencies (as measured by the (DXY) is near a five-month low after losing 8.4% from its high; with US inflation cooling and investors betting the Fed will only hike rates by 50 basis points (0.5%) at their December meeting next.

Currencies to watch include the AUDUSD, as the RBA meets on Tuesday December 6. The RBA is expected to make its 3rd consecutive quarter-point (0.25%) hike in the cash rate, which will take the cash rate from 2.85% to 3.1%. AUDUSD is up ~10% from its October low on forwarding thinking that commodity demand from China will increase as some major cities have started to ease restrictions.

For a weekly look at what to watch in markets - tune into our Spotlight.

For a global look at markets – tune into our Podcast.



The Saxo Group entities each provide execution-only service, and access to analysis permitting a person to view and/or use content available on or via the website is not intended to and does not change or expand on this. Such access and use are at all times subject to (i) The Terms of Use; (ii) Full Disclaimer; (iii) The Risk Warning; (iv) the Inspiration Disclaimer and (v) Notices applying to Trade Inspiration, Saxo News & Research and/or its content in addition (where relevant) to the terms governing the use of hyperlinks on the website of a member of the Saxo Group by which access to Saxo News & Research is gained. Such content is therefore provided as no more than information. In particular, no advice is intended to be provided or to be relied on as provided nor endorsed by any Saxo Group entity; nor is it to be construed as solicitation or an incentive provided to subscribe for or sell or purchase any financial instrument. All trading or investments you make must be pursuant to your own unprompted and informed self-directed decision. As such no Saxo Group entity will have or be liable for any losses that you may sustain as a result of any investment decision made in reliance on information which is available on Saxo News & Research or as a result of the use of the Saxo News & Research. Orders given and trades effected are deemed intended to be given or effected for the account of the customer with the Saxo Group entity operating in the jurisdiction in which the customer resides and/or with whom the customer opened and maintains his/her trading account. Saxo News & Research does not contain (and should not be construed as containing) financial, investment, tax or trading advice or advice of any sort offered, recommended or endorsed by Saxo Group and should not be construed as a record of our trading prices, or as an offer, incentive or solicitation for the subscription, sale or purchase in any financial instrument. To the extent that any content is construed as investment research, you must note and accept that the content was not intended to and has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such, would be considered as a marketing communication under relevant laws.

Please read our disclaimers:
Notification on Non-Independent Investment Research (
Full disclaimer (

None of the information contained here constitutes an offer to purchase or sell a financial instrument, or to make any investments. Saxo Markets does not take into account your personal investment objectives or financial situation and makes no representation and assumes no liability as to the accuracy or completeness of the information nor for any loss arising from any investment made in reliance of this presentation. Any opinions made are subject to change and may be personal to the author. These may not necessarily reflect the opinion of Saxo Markets or its affiliates.

Saxo Markets
88 Market Street
CapitaSpring #31-01
Singapore 048948

Contact Saxo

Select region


Saxo Capital Markets Pte Ltd ('Saxo Markets') is a company authorised and regulated by the Monetary Authority of Singapore (MAS) [Co. Reg. No.: 200601141M ] and is a wholly owned subsidiary of Saxo Bank A/S, headquartered in Denmark. Please refer to our General Business Terms & Risk Warning to consider whether acquiring or continuing to hold financial products is suitable for you, prior to opening an account and investing in a financial product.

Trading in financial instruments carries various risks, and is not suitable for all investors. Please seek expert advice, and always ensure that you fully understand these risks before trading. Trading in leveraged products such as Margin FX products may result in your losses exceeding your initial deposits. Saxo Markets does not provide financial advice, any information available on this website is ‘general’ in nature and for informational purposes only. Saxo Markets does not take into account an individual’s needs, objectives or financial situation.

The Saxo trading platform has received numerous awards and recognition. For details of these awards and information on awards visit

The information or the products and services referred to on this website may be accessed worldwide, however is only intended for distribution to and use by recipients located in countries where such use does not constitute a violation of applicable legislation or regulations. Products and Services offered on this website are not intended for residents of the United States, Malaysia and Japan. Please click here to view our full disclaimer.

This advertisement has not been reviewed by the Monetary Authority of Singapore.

Apple and the Apple logo are trademarks of Apple Inc, registered in the US and other countries and regions. App Store is a service mark of Apple Inc. Google Play and the Google Play logo are trademarks of Google LLC.