Sponsored Content Harry Brassington, of Team Asset Management, offers a weekly round-up of global markets The 2024 bull stampede continued this week as Beijing officials declared their own version of Mario Draghi’s infamous “whatever it takes” moment, unleashing a wide-ranging series of monetary- and fiscal-stimulus measures in a bid to shore up investor confidence. The People’s Bank of China announced significant cuts to bank reserve requirements and a key lending rate, a slew of property-related measures designed to stimulate activity in the troubled sector, and liquidity support for China Inc. Mr Market’s ability to confound and surprise is one of the few constants in the investing world.
Having registered 52-week price lows less than a fortnight ago amid a widespread sense that China has become “un-investable”, the domestic Shanghai and Shenzhen indexes soared to touch new 52-week price highs on Monday, enjoying their best week since 2008. Chinese e-commerce giants Alibaba, JD.com, and PDD all surged, while property and consumer stocks also rallied ferociously.
China’s news acted like a steroid injection for risk assets, with sectors and companies that have been hurt by the country’s economic slowdown this year now benefitting from the pivot towards improving domestic consumption and industrial activity. Mining stocks, including Antofagasta, Anglo-American, Glencore and Rio Tinto, led the gains in Europe, benefitting from what is likely to be significant.