Arizona Tribune - Global stocks trade mixed tracking China stimulus

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Global stocks trade mixed tracking China stimulus
Global stocks trade mixed tracking China stimulus / Photo: SPENCER PLATT - GETTY IMAGES NORTH AMERICA/AFP

Global stocks trade mixed tracking China stimulus

Global stock markets traded mixed Wednesday as China's latest measure to bolster its economy, the world's second-largest, largely failed to extend gains for equities.

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Shanghai closed up 1.2 percent and Hong Kong advanced 0.7 percent after both markets surged more than four percent on Tuesday following a slew of Chinese interest-rate cuts this week.

In Europe on Wednesday, Paris and Frankfurt stock markets dipped in afternoon deals, while London rose slightly.

Oil prices retreated after strong gains Tuesday.

"The problem is, the stimulus measures will take time to show in the economic data," said Ipek Ozkardeskaya, senior analyst at Swissquote Bank, adding that the actions "won't do much to fix the country's deepest issues" including a heavy-debt burden.

China's central bank on Wednesday announced a cut to its medium-term lending facility, the interest for one-year loans to financial institutions.

That came one day after the country unveiled some of its boldest measures in years to support an economy battered by a long-running debt crisis in the property sector and weak consumer spending.

Separately, the OECD grouping of key industrial nations called Wednesday for higher property taxes to fight an indebted global economy, which it said should grow slightly stronger than expected this year.

Traders were awaiting the release Friday of the US personal consumption expenditures index -- the Federal Reserve's preferred inflation metric -- hoping for an idea about its next move on interest rates.

The Fed's jumbo rate cut last week ramped up hopes that it would embark on a series of reductions as prices rise at a less heated pace and the American jobs market slows.

Officials are expected to continue easing policy to 2026, according to the US central bank's "dot plot" guidance on rates released last week.

The prospect of more cuts helped haven investment gold hit a new peak of $2,670.57 an ounce Wednesday, with the precious metal gaining also on geopolitical unrest, notably in the Middle East, according to analysts.

- Key figures around 1140 GMT -

London - FTSE 100: UP 0.3 percent at 8,303.39 points

Paris - CAC 40: DOWN 0.3 percent at 7,581.65

Frankfurt - DAX: DOWN 0.4 percent at 18,923.89

Tokyo - Nikkei 225: DOWN 0.2 percent at 37,870.26 (close)

Hong Kong - Hang Seng Index: UP 0.7 percent at 19,129.10 (close)

Shanghai - Composite: UP 1.2 percent at 2,896.31 (close)

New York - Dow: UP 0.2 percent at 42,208.22 (close)

Euro/dollar: UP at $1.1188 from $1.1181 on Tuesday

Pound/dollar: DOWN at $1.3369 from $1.3412

Dollar/yen: UP at 144.38 yen from 143.18 yen

Euro/pound: UP at 83.68 pence from 83.33 pence

Brent North Sea Crude: DOWN 1.2 percent at $74.30 per barrel

West Texas Intermediate: DOWN 1.3 percent at $70.65 per barrel

N.Mitchell--AT