In Asian Equity Markets stocks weakened slightly on Thursday as rising COVID cases in China unsettled investors and cast doubt over chances of a swift recovery for the world’s second biggest economy after the relaxation of stringent COVID curbs. MSCI’s broadest index of Asia-Pacific shares outside Japan was down 0.78 percent. China shares fell 0.3 percent, while Hong Kong’s stock market slid 1 percent. Japan’s Nikkei fell more than 1 percent to a nearly three months low, while Australia’s resource heavy S&P/ASX 200 index lost 0.94 percent.

In Currency Markets the dollar pared some gains on Thursday after riding long-end U.S. Treasury yields higher overnight, though investors remained on edge going into the year end as initial optimism over China’s reopening fizzled. The Japanese yen was last roughly 0.6 percent higher at 133.71 per dollar, languishing near a one-week low of 134.50 that was hit in the previous session. Sterling rose 0.1 percent to $1.2030, but was similarly not far off its three-week trough of $1.1993 hit last week. The euro was up 0.12 percent at $1.0623.

In US Equity Markets stocks fell on Wednesday, as investors grappled with mixed economic data, rising COVID cases in China, and geopolitical tensions heading into 2023. The Dow fell 1.1 percent, to 32,875.71; the S&P 500 lost 1.20 percent, at 3,783.22; and the Nasdaq Composite fell 1.35 percent, to 10,213.29. Shares of Tesla Inc gained 3.3 percent in choppy trade, a day after hitting the lowest level in more than two years. Southwest Airlines Co fell 5.2 percent a day after the carrier came under fire from the U.S. government for canceling thousands of flights.

In Commodities Markets oil prices settled lower on Wednesday as traders weighed concerns over a rise in COVID-19 cases in China, the world’s top oil importer, against the chances easing pandemic restrictions in the country will boost fuel demand. Brent crude futures fell 1.3 percent, to settle at $83.26 a barrel, while U.S. West Texas Intermediate crude futures settled at $78.96 per barrel, down 0.7 percent. Spot gold fell 0.6 percent to $1,803.16 per ounce. Spot silver fell 2.2 percent to $23.5138 per ounce, platinum was down 1.1 percent to $1,008.39, while palladium fell 2.5 percent to $1,783.24.

In European Equity Markets stocks closed lower on Wednesday, weighed down by declines in energy stocks, while Britain’s FTSE 100 outpaced peers after a Christmas holiday as investors assessed Beijing’s steps towards reopening its COVID-battered economy. The region-wide STOXX 600 fell 0.1 percent, while the FTSE 100 advanced 0.3 percent as miners and China-exposed stocks jumped. Energy stocks fell 0.8 percent, tracking lower oil prices. London-listed financials exposed to China such as insurer Prudential and HSBC added 0.6 percent and 1.5 percent, respectively.

In Bond Markets the yield on the benchmark U.S. 10-year Treasury rose for a third straight day on Wednesday, reversing an earlier decline, as investors attempted to navigate the impact of China’s reopening policy on the path of interest rate hikes by the U.S. Federal Reserve. The yield on 10-year Treasury notes was up 2.5 basis points to 3.883 percent after hitting a six-week high of 3.89 percent. The yield on the 30-year Treasury bond was up 3.3 basis points to 3.976 percent. The two-year U.S. Treasury yield was down 1.1 basis points at 4.357 percent.