China cuts trading tax, 3M's reported earplugs settlement - what's moving markets
Investing.com — China slashes a levy on stock trading in a bid to reinvigorate capital markets and boost investor confidence. Shares in the country rise following the announcement, although ailing property group Evergrande's shares slide sharply after they start trading for the first time since March 2022. Meanwhile, 3M's stock climbs in premarket trading on reports that the industrial conglomerate has reached a settlement over personal injury claims related to earplugs it has sold to the U.S. military.
1. Chinese shares jump following trading levy cut
Shares in China rose on Monday after regulators slashed the country's 0.1% stamp duty on stock trading in half, as Beijing attempts to restore investor confidence and reignite its flagging capital markets.
China’s Shanghai Shenzhen CSI 300 and Shanghai Composite indexes both surged about 2.4% at one point, while Hong Kong’s Hang Seng added 1.8%. The three were the best performers in Asia, recovering from their weakest levels this year, although analysts warned that the rally may be short-lived as the impact from the cuts wanes.
Property stocks were among the top performers. The sole exception was China Evergrande Group (HK:3333), which resumed trading in Hong Kong for the first time in almost a year and a half on Monday. Shares in the embattled developer at the center of China's real estate crisis plummeted by about 80%, shedding as much as $2 billion in value.
2. Futures point higher
U.S. stock futures edged higher on Monday, with investors digesting comments from Federal Reserve Chair Jerome Powell on the potential path ahead for the U.S. central bank's monetary policy.
At 05:16 ET (09:16 GMT), the Dow futures contract added 68 points or 0.20%, S&P 500 futures inched
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