Stock markets and oil prices rallied Tuesday after China's central bank unveiled fresh stimulus measures to kickstart growth in the world's number two economy. After a string of weak data that fanned worries about the country's financial health and particularly its property sector, the Chinese central bank said it would cut a slew of rates to boost growth. Enthusiasm about Beijing's move helped Wall Street to shrug off disappointing US consumer confidence data.
Following big gains in Hong Kong and Shanghai, Wall Street stocks pushed higher, lifting the Dow and S&P 500 to fresh records. The Paris stock market led the way in Europe, closing with a 1.3 percent gain as the luxury fashion sector was boosted by hopes of rebounding Chinese demand.
China's measures "should be good news for commodity producers, stocks with links to the Chinese and Hong Kong property market, and European companies that sell to the Chinese consumer", said Kathleen Brooks, research director at broker XTB. "This package could help the beleaguered German luxury car sector along with French luxury goods houses," she added. Shares in German automakers surged as China is a key market for the sector, with BMW notably adding more than three percent.
Overall,Frankfurt ended the session up 0.8 percent, brushing off news that German business confidence deteriorated for a fourth straight month in September, according to a closely-watched survey. London edged up 0.
3 percent, helped by strong gains to mining groups o.
