Hopes of more stimulus boosts China's stock market

China's slowing economy took centre stage on Monday (August 10th), which injected some markets with new vigour as many investors hoped the government is on the verge of releasing more policy stimulus.

Asian equities with major indices gained as much as four per cent, while over in Europe, trading was more restrained as mining and energy stocks weighed heavily on the pan-European FTSEurofirst 300, leading it to shed 0.2 per cent.

Last month, Chinese producer prices plummeted to their lowest point in six years and exports dropped significantly by 8.3 per cent. This fuelled expectations of more stimulus being rolled out by Central Bank of the Republic of China, just months after it intervened to tame the country's unruly stock market.

Kit Juckes, senior FX strategist at Societe Generale in London, told Reuters: "Expectations of further easing are building and announcements of liberalization have boosted the equity market."

The situation in the US is far removed from what's going on in China, as robust data released on Friday (August 7th) strengthened expectations that the Federal Reserve is ready to increase interest rates in September.

Today, the dollar almost reached a four-month high against several of its foreign counterparts, while both ten-year German and US Treasury yields climbed one basis point higher. 

The MSCI All-Country World index was little changed, while emerging equities added 0.1 per cent. 

In Europe, investors were optimistic over the situation in Greece, as bailout talks to save the country from bankruptcy seem to be running smoothly - a stark contrast to the lengthy and tense negotiations that have been happening since the new government came into power.

Source:
http://www.reuters.com/article/2015/08/10/us-markets-global-idUSKCN0QF01620150810
http://www.theglobeandmail.com/globe-investor/inside-the-market/market-updates/premarket-grim-china-data-keeps-stimulus-hopes-alive/article25901621/ 
Many thanks, 

Leigh Hewitt
Content Editor

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Nima Baniamer
14:52 (0 minutes ago)

to me 
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---------- Forwarded message ----------
From: Leigh Hewitt <leigh.hewitt@axonn.co.uk>
Date: 10 August 2015 at 14:48
Subject: OF - by 3 please
To: Nima Baniamer <nima.baniamer@axonn.co.uk>

Hopes of more stimulus boosts China's stock market 

Summary: Further signs of China's economy slowing are prompting many investors to believe the government will release further policy stimulus. 

China's slowing economy took centre stage on Monday (August 10th), which injected some markets with new vigour as many investors hoped the government is on the verge of releasing more policy stimulus.

Asian equities with major indices gained as much as four per cent, while over in Europe, trading was more restrained as mining and energy stocks weighed heavily on the pan-European FTSEurofirst 300, leading it to shed 0.2 per cent.

Last month, Chinese producer prices plummeted to their lowest point in six years and exports dropped significantly by 8.3 per cent. This fuelled expectations of more stimulus being rolled out by Central Bank of the Republic of China, just months after it intervened to tame the country's unruly stock market.

Kit Juckes, senior FX strategist at Societe Generale in London, told Reuters: "Expectations of further easing are building and announcements of liberalization have boosted the equity market."

The situation in the US is far removed from what's going on in China, as robust data released on Friday (August 7th) strengthened expectations that the Federal Reserve is ready to increase interest rates in September.

Today, the dollar almost reached a four-month high against several of its foreign counterparts, while both ten-year German and US Treasury yields climbed one basis point higher. 

The MSCI All-Country World index was little changed, while emerging equities added 0.1 per cent. 

In Europe, investors were optimistic over the situation in Greece, as bailout talks to save the country from bankruptcy seem to be running smoothly - a stark contrast to the lengthy and tense negotiations that have been happening since the new government came into power.