- REUTERS/China Daily
- Global stocks rallied Tuesday after China’s government sought to soothe investors spooked by recent bad data coming out of the country.
- The country’s state planner said it would aim to achieve “a good start” in the first quarter for the economy, words widely seen to portend more stimulus in coming months.
- You can follow the latest market moves at Markets Insider.
Global stocks rallied Tuesday after China’s government sought to soothe investors spooked by recent bad data coming out of the country.
Markets around the world plunged Monday after fresh data showed that the value of Chinese imports and exports fell heavily in the year to December, adding to a lengthening list of evidence that all is not well in the world’s second-largest economy.
Senior officials from the Chinese government on Tuesday moved to calm fears about any ailments in the economy, however, with Reuters reporting that Premier Li Keqiang appeared on television to inform people that “the government is seeking to establish conditions helpful to meeting this year’s economic goals.”
The country’s state planner also spoke, saying it would aim to achieve “a good start” in the first quarter for the economy, words widely seen to portend more stimulus in coming months.
Those words appear to have been enough to calm jittery investors, with shares across Asia and Europe higher in Tuesday trade.
“Equities are rebounding on Tuesday after recovering from Monday’s China inspired sell off,” Jasper Lawler, the head of research at London Capital Group, said in an email.
“Soft data from China sent stocks reeling in the previous session, as traders were unable to shake off slowing growth fears. Today’s bounce comes following a pledge of more supportive measures from Beijing to stabilize the slowing Chinese economy.”
Here is the roundup:
- All major Chinese indexes were higher by at least 1% during Tuesday’s session, with the China A50 index the biggest winner, climbing by about 2.2%. Elsewhere, the benchmark Shanghai Composite was up 1.4%, while Hong Kong’s Hang Seng gained 2%.
- Other Asian markets performed strongly, with Japan’s Nikkei 225 ending the day just under 1% higher.
- In Europe stocks opened positively, and after around an hour of trading major indexes are seeing gains of roughly 0.5% on average. The Euro Stoxx 50 broad index has gained 0.7% as of 9 a.m. GMT (4 a.m. ET).
- After another negative session in the US on Monday, stocks look set to rebound when markets open stateside later in the day. According to futures prices, all three major US indexes will open between 0.3% and 0.5% higher.