Chinese stocks surged Friday, after top officials in Beijing said they would try to minimize the economic impact from the country's zero-Covid policy and promptly eased some of its quarantine restrictions.

Hong Kong's benchmark Hang Seng Index jumped 7.7% in its biggest single-day rally since March, taking its increase so far this month to around 18%. Stocks of internet-platform companies, electronics-parts manufacturers and Chinese real-estate developers were among the biggest gainers.


EU Lowers 2023 Growth Outlook, Raises Inflation Forecasts as War in Ukraine Takes Toll

The European Commission lowered 2023 growth expectations for the eurozone economy and raised inflation forecasts on Friday, with Russia's invasion of Ukraine denting global demand and reinforcing inflationary pressures.

Gross domestic product in the 19-member eurozone is forecast to grow by just 0.3% in 2023, the Commission said in its quarterly report, downgrading its July forecast of a 1.4% expansion. Eurozone economic growth is projected at 1.5% in 2024.


U.K. Economy Shrank in Third Quarter, Sliding Toward Recession

The U.K. economy contracted in the three months through September, as high energy prices and rising interest rates mark the beginning of what policy makers expect will be a long-lasting recession that is likely to spread across Europe in coming months.

The country's gross domestic product was 0.7% lower on an annualized basis in the third quarter compared with the three months through June, the U.K.'s Office for National Statistics said Friday. That was the first decline in output since the first three months of 2021, when large parts of the economy were in lockdown to contain a surge in Covid-19 infections.


German Inflation Hits Highest Level in More Than 70 Years

Germany's annual inflation rate accelerated in October, hitting the highest reading since December 1951, according to final data released by the German statistics office on Friday.

The consumer price index rose 10.4% in October on year measured by national standards, up from 10.0% in September, the statistics office Destatis said, confirming its preliminary figures.


Hong Kong Cuts Economic Growth Forecast for 2022

Hong Kong cut its 2022 gross domestic product forecast after taking into account the economic performance in the first three quarters of the year and the subdued short-term outlook.

The government now expects real GDP to contract 3.2% for 2022, compared with its previously projected range of 0.5% contraction to 0.5% growth.


China Eases Some Covid-19 Rules Even as Cases Pass 10,000

HONG KONG-China eased pandemic controls on Friday, as the country's leaders seek to lessen the pain of a stringent zero-Covid policy that has exacted a heavy economic toll and stoked rising public resentment.

In its first meeting since being appointed last month, the ruling Politburo Standing Committee set out a raft of new rules to "optimize and adjust" the policy, according to a release Friday by the National Health Commission. The measures seek to minimize the impact on economic growth and people's lives, as well as further open the country's borders for foreign visitors, the release said.


GOP Inches Closer to Expected Narrow House Majority, With Senate Still a Tossup

PHOENIX-Republicans remained on track Thursday to tip the House majority in their favor, but Senate control was still undecided as analysts watched incoming ballots for clues as to whether Democrats could gain the upper hand in that chamber and split the legislative powers between the two parties.

In the House, with 32 contests up in the air, Republicans had won 211 races, compared with 192 for Democrats, putting the GOP within striking distance of the 218 needed for a House majority. In the Senate, Republicans had claimed 49 seats compared with 48 for Democrats, and would need to win in two of three remaining states-Arizona, Nevada and Georgia-in order to win a majority.


Kevin McCarthy's Bid for Speaker Complicated by GOP's 2022 Midterm Results

WASHINGTON-Republicans' weaker-than-expected performance in the midterms has complicated House Minority Leader Kevin McCarthy's path to becoming the next speaker of the House and created potential headaches if he does get the top job.

House Republicans appear likely to win a slim House majority in the next Congress, putting the California lawmaker on the cusp of his long-held ambition to oust Democratic leader Nancy Pelosi. The party heads into a leadership vote next week.


Federal Judge in Texas Strikes Down Biden Student-Loan Forgiveness Program

A federal judge in Texas on Thursday struck down the Biden administration's student-debt forgiveness plan, imperiling a key administration priority that would have canceled up to $20,000 in student loans for tens of millions of borrowers.

The Biden administration's plan is an "unconstitutional exercise of Congress's legislative power" that also failed to go through normal regulatory processes, Judge Mark Pittman of the Northern District of Texas wrote in a 26-page opinion.


New York to Close Migrant Tent City Less Than a Month After Opening It

New York City officials will close the tent city they built to shelter an influx of migrants less than a month after opening it, Mayor Eric Adams said Thursday.

The temporary facility, with room for up to 1,000 single men in a stadium parking lot on Randalls Island, had been a screening point for the busloads of migrants who have arrived from the southern border since the spring. As many as eight buses a day were arriving in Manhattan in September, officials and nonprofit workers said.


Write to paul.larkins@dowjones.com TODAY IN CANADA

Earnings:

(3Q unless stated otherwise)

ABC Tech 1Q

Algonquin Power & Utilities

CES Energy

Emera Incorporated

Heroux-Devtek 2Q

Hydro One

IMV

MDA

Neo Performance

Orla Mining

Economic Indicators:

Remembrance Day

Stocks to Watch:

Automotive Prop REIT 3Q Net C$8.9M

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Cipher Pharmaceuticals 3Q Rev $4.8M; EPS $0.10

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High Arctic 3Q Rev C$12.5M Vs. C$18.7M; Loss/Shr C$0.09 Vs. Loss C$0.10; Divestment of Canadian Production Services Segment Allows Co to Focus on Putting Rigs Back to Work in PNG; Expect Rig 103 to Commence Drilling Ops in 1Q 2023

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Olympia Financial Group Inc. Announces 29% Increase To Monthly Cash Dividend

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Rubellite Energy 3Q Rev C$13.7M; Net C$0.19

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VitalHub 3Q Rev C$9.8M


Expected Major Events for Friday

07:00/GER: Oct CPI

07:00/UK: Sep Index of production

07:00/UK: Sep UK trade

07:00/UK: Sep Index of services

07:00/UK: 3Q Business investment in the UK: provisional results

07:00/UK: 3Q First quarterly estimate of GDP

07:00/UK: Sep Monthly GDP estimates

12:30/UK: Oct NIESR Monthly GDP Tracker

15:00/US: Nov University of Michigan Survey of Consumers - preliminary

16:59/GER: Sep Balance of Payments

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Expected Earnings for Friday

Akouos Inc (AKUS) is expected to report for 3Q.

Algonquin Power & Utilities Corp (AQN,AQN.T) is expected to report $0.17 for 3Q.

Angion Biomedica Corp (ANGN) is expected to report for 3Q.

Avalon Holdings (AWX) is expected to report for 3Q.

Boston Omaha Corp (BOC) is expected to report for 3Q.

Buhler Industries (BIIAF,BUI.T) is expected to report for 3Q.

Catalyst Biosciences Inc (CBIO) is expected to report $-0.10 for 3Q.

ClearOne Inc (CLRO) is expected to report for 3Q.

Crinetics Pharmaceuticals Inc (CRNX) is expected to report $-0.79 for 3Q.

D-Box Technologies (DBO.T,DBOXF) is expected to report for 2Q.

Emera is expected to report $0.74 for 3Q.

Enterprise Group is expected to report for 3Q.

Exela Technologies Inc (XELA) is expected to report for 3Q.

Heroux-Devtek (HRX.T) is expected to report $0.05 for 2Q.

High Arctic Energy Services is expected to report $-0.01 for 3Q.

Hydro One Ltd (H.T) is expected to report $0.49 for 3Q.

Inrad Optics (INRD) is expected to report for 3Q.

Larimar Therapeutics Inc (LRMR) is expected to report for 3Q.

MCAN Mortgage (MAMTF,MKP.T) is expected to report $0.37 for 3Q.

MGT Capital Investments (MGTI) is expected to report for 3Q.

McCoy Global is expected to report for 3Q.

MediciNova (4875.TO,MNOV) is expected to report $-0.09 for 3Q.

Meridian Bioscience Inc (VIVO) is expected to report $0.12 for 4Q.

Mustang Bio Inc (MBIO) is expected to report $-0.20 for 3Q.

Nicholas Financial (NICK) is expected to report for 2Q.

ONEX Corp (Canada) (ONEX.T) is expected to report for 3Q.

Orgenesis Inc (ORGS) is expected to report $-0.02 for 3Q.

POINT Biopharma Global Inc (PNT) is expected to report for 3Q.

Patriot National Bancorp Inc (PNBK) is expected to report for 3Q.

Prelude Therapeutics Inc (PRLD) is expected to report for 3Q.

ProMIS Neurosciences is expected to report for 3Q.

SANUWAVE Health (SNWV) is expected to report for 3Q.

SELLAS Life Sciences Group Inc (SLS) is expected to report for 3Q.

Savara Inc (SVRA) is expected to report $-0.07 for 3Q.

Shaw Communications Inc - Class B (SJR,SJR.A.V,SJR.B.T) is expected to report $0.33 for 4Q.

Spectral Medical is expected to report $-0.01 for 3Q.

Star Equity Holdings Inc (STRR) is expected to report for 3Q.

Supremex is expected to report for 3Q.

Vincerx Pharma Inc (VINC) is expected to report for 3Q.

Zomedica Corp (ZOM) is expected to report for 3Q.

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ANALYST RATINGS ACTIONS

Activision Blizzard Raised to Outperform From Market Perform by Raymond James

AdTheorent Holding Cut to Underperform From Buy by B of A Securities

AeroVironment Raised to Outperform From Market Perform by Raymond James

Agrify Cut to Neutral From Buy by Alliance Global Partners

Altria Cut to Sell From Neutral by UBS

Amyris Cut to Underweight From Neutral by JP Morgan

(MORE TO FOLLOW) Dow Jones Newswires

11-11-22 0609ET