Stock market today: Markets rally again as China ramps up support for its economy
World shares have surged following reports that China plans to spend billions of dollars to help rebuild the capital of state-run banks and provide other fiscal support for the economy
World shares surged Thursday following reports that China plans to spend billions of dollars to help rebuild the capital of state-run banks and provide other fiscal support for the economy.
The slowdown in China’s economy has weighed on trade and global growth, and blasts of stimulus from Beijing have lifted markets this week.
Germany's DAX gained 1.3% to 19,162.92 and the CAC 40 in Paris was up 1.7% at 7,696.21. In London, the FTSE 100 rose 0.5% to 8,310.73.
U.S. futures also shot higher, with the contract for the S&P 500 up 0.8% and that for the Dow Jones Industrial Average gaining 0.5%.
Bloomberg and other reports cited unnamed sources as saying that the Chinese government would spend 1 trillion yuan ($142 billion) on capital injections for lenders. Earlier this week, Li Yunze, head of the National Financial Regulatory Commission, told reporters in Beijing that regulators would increase capital at six large banks, but he gave no dollar amount.
Banks interest margins and profits have shrunk, so “It is necessary to coordinate various channels such as internal and external channels to replenish capital,” Li said at a news conference that showcased a raft of policies aimed at countering a prolonged downturn in the property sector.
The government announced “living allowance,” or cash handouts, for the poor ahead of next week's National Day holidays. While subsidies to ordinary people are uncommon, the ruling Communist Party sometimes marks special occasions with payments to families in difficulty.
The amount of the payments was not
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