Japan’s Nikkei surges by 7.7%, its biggest gain since 2008 after China pledges new spending measure to support growth
- Summary: Stimulus hopes boost markets
- UK manufacturing output weakens
- Introduction: Nikkei surges as Abe pledges tax cuts
- China plans new fiscal measures
- World Bank to Fed: Don’t raise rates now
Over in New York, hopes of Asian stimulus measures have crunched into fears of a US interest rate hike.
After that solid start, the Dow Jones and the S&P 500 just dipped into negative territory.
Stocks go red.
Wall Street is however proving to be something of a drag on sentiment – the latest employment numbers have shown a record number of job openings state-side and this is once again throwing open the possibility of the Fed gambling on a rate hike next week.
If conviction builds further here then even talk of renewed stimulus measures from Beijing will do little to placate a market that’s worried about the wider global consequences of higher borrowing costs in the US, but for now it’s the base metals miners that are pulling through much of the upside.
The other main European markets ended the day higher too, although Germany’s rally rather fizzled out.
Source: The Guardian Circular Economy RSS