Chinese triad offers a tonic to battered world markets
China’s central bank easing, data and trade talks boost markets, with overall sentiment betting the US interest rates will be cut on recession fears
London — World stock markets rallied on Friday after China’s central bank moved to support its slowing economy, Chinese services data pointed to positive growth, and Beijing announced a new round of trade talks with Washington. Markets were buoyed by the resumption of trade talks between China and the US and by encouraging surveys of China's services sector. A slew of weak data had showed China's economy was losing steam. China’s central bank said on Friday that it was cutting the amount of cash that banks must hold as reserves for the fifth time in the past year — freeing $116bn for new lending as it tries to reduce the risk of a sharper economic slowdown. The boost from China brought some respite to battered markets, with MSCI’s world stock index up a third of a percent and US stock futures around 1.5% firmer. “We’re not expecting a major breakthrough [in trade talks] on January 7-8,” said Edward Park, deputy chief investment officer at Brooks Macdonald. “That said, where equity m...
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