European, Asian stocks rise on China stimulus

AFP, LONDON: European and Asian stock markets rose yesterday as fresh stimulus from the Chinese central bank lifted hopes for the world’s number two economy, analysts said.
Frankfurt’s DAX 30 index was the standout European performer, rising 1.7 per cent in midday deals, helped also by official data showing that German unemployment remained at historic lows in February.
“The major indices across Asia managed to post some fairly solid gains, helping Europe to lift its positive start to the week and push the major European stock markets towards monthly highs,” said James Hughes, chief market analyst at traders GKFX.
Markets also were boosted yesterday by merger talk, according to analysts.
US-based global markets operator Intercontinental Exchange said it was mulling a bid for the London Stock Exchange Group, already in merger talks with Germany’s Deutsche Boerse, operator of the Frankfurt market.
ICE, which owns the New York Stock Exchange, said in a statement that it was “considering making an offer for LSEG”, which owns the London and Milan stock exchanges. China though was the key driver behind higher markets after its central bank cut the amount of reserves banks must set aside in Beijing’s latest attempt at tackling the country’s slowing growth.
After Chinese markets closed Monday, policymakers cut the “reserve requirement ratio” for financial institutions—the share of deposits that they must have available in cash --  by 0.50 percentage points, freeing up more funds for them to lend.
The announcement boosted the mood across Asian trading floors, with Shanghai jumping 1.7 percent and Tokyo reversing early losses to close up 0.4 percent Tuesday.
China’s central bank move came after a G20 finance ministers’ weekend meeting in Shanghai that stressed the use of all available policy tools to boost growth and settle wild volatility on global equity markets.
And it helped to offset more weak Chinese manufacturing figures. Official data Tuesday showed that February activity shrank at its fastest rate in four years.
India’s main stocks index meanwhile posted its biggest rise since Prime Minister Narendra Modi came to power almost two years ago, after the government presented a budget expected to boost rural demand.

European, Asian stocks rise on China stimulus

AFP, LONDON: European and Asian stock markets rose yesterday as fresh stimulus from the Chinese central bank lifted hopes for the worlds number two economy, analysts said. Frankfurts DAX 30 index was the standout European performer, rising 1.7 per cent in midday deals, helped also by official data showing that German unemployment remained at historic lows in February. The major indices across Asia managed to post some fairly solid gains, helping Europe to lift its positive start to the week and push the major European stock markets towards monthly highs, said James Hughes, chief market analyst at traders GKFX. Markets also were boosted yesterday by merger talk, according to analysts. US-based global markets operator Intercontinental Exchange said it was mulling a bid for the London Stock Exchange Group, already in merger talks with Germanys Deutsche Boerse, operator of the Frankfurt market. ICE, which owns the New York Stock Exchange, said in a statement that it was considering making an offer for LSEG, which owns the London and Milan stock exchanges. China though was the key driver behind higher markets after its central bank cut the amount of reserves banks must set aside in Beijings latest attempt at tackling the countrys slowing growth. After Chinese markets closed Monday, policymakers cut the reserve requirement ratio for financial institutionsthe share of deposits that they must have available in cash -- by 0.50 percentage points, freeing up more funds for them to lend. The announcement boosted the mood across Asian trading floors, with Shanghai jumping 1.7 percent and Tokyo reversing early losses to close up 0.4 percent Tuesday. Chinas central bank move came after a G20 finance ministers weekend meeting in Shanghai that stressed the use of all available policy tools to boost growth and settle wild volatility on global equity markets. And it helped to offset more weak Chinese manufacturing figures. Official data Tuesday showed that February activity shrank at its fastest rate in four years. Indias main stocks index meanwhile posted its biggest rise since Prime Minister Narendra Modi came to power almost two years ago, after the government presented a budget expected to boost rural demand.