China’s stimulus lifts global market optimism

China’s shares surged on Thursday, lifting markets across Asia and Europe. Investors responded positively to new stimulus measures from Beijing. The rally was particularly strong in mainland property stocks. They leapt 15%, bolstering the broader Chinese market by 4%. In Europe, stock indices edged closer to record highs. They mirrored the optimism seen in Asian markets. Positive sentiments were further buoyed by a report. It suggested that Saudi Arabia might increase oil output. This caused crude prices to fall by 2.5%. The Swiss National Bank cut interest rates by 25 basis points. The move aimed to stimulate economic growth. In the U.S., Nasdaq futures climbed by 1%. This was helped by a surge in Micron Technology’s stock. European stocks were higher on Thursday. They were spurred on by overnight gains in Asia-Pacific markets. The pan-European Stoxx 600 was up around 1.2% at around 1:50 p.m. London time. Most sectors and major bourses were in positive territory. Mining stocks led the gains, up 4.5%. Tech and household goods stocks were both around 3.8% higher. Oil and gas stocks fell 3.1%. Crude prices dropped on a report that Saudi Arabia is preparing to scrap its unofficial oil price target of $100 per barrel. Major energy firms traded more than 3% lower. Asia-Pacific markets had a relatively upbeat session. This bolstered the European opening.

china’s stimulus boosts global optimism

Hong Kong’s Hang Seng advanced 4.16%. It reached its highest level since May. Mainland China’s CSI 300 extended its winning streak to the seventh day. Japan’s Nikkei 225 climbed 2.79%. The broad-based Topix was up 2.66%. This followed the Bank of Japan’s announcements from its July meeting. European shares jumped on Thursday. They were buoyed by optimism in Asia. This followed news that China is considering capital injections into its top banks. The pan-European STOXX 600 index was up 1% at 524.56 points by 0710 GMT. This was just shy of its record high of 526.66. Technology and basic resources were the biggest boosters to the benchmark index. They gained over 3% each. Oil stocks were the biggest drag, losing 2.8%. Oil prices fell on news of top exporter Saudi Arabia giving up its crude oil price target. A report noted that China is considering injecting up to 1 trillion yuan into its top banks. This would increase their capacity and support its struggling economy. Chinese leaders also pledged to support the economy. They plan to do this through forceful interest rate cuts. Luxury stocks also lifted the benchmark. LVMH and Hermes gained over 4.3% each. The Swiss National Bank is expected to cut its interest rate by 25 basis points. H&M dropped 7.7%. The world’s second-largest listed fashion retailer said it no longer expected to reach its full-year earnings margin goal. It also reported a lower-than-expected operating profit for the third quarter.