MSCI’s gauge of stocks across the globe gained 4.51 points, or 0.54%, to 844.56, and reached a record high
A widely followed global stock index rose to a record high, and copper prices reached their highest level in 10 weeks on Tuesday after China unveiled stimulus measures to support its economy.
The Dow and S&P 500 eked out record closing highs as mining stocks soared. China’s yuan touched a 16-month high against the U.S. dollar, and oil prices jumped to a three-week high on the news from China, the world’s top crude importer.
People’s Bank of China Governor Pan Gongsheng announced plans to reduce borrowing costs and inject more funds into the economy, as well as to ease households’ mortgage repayment burden. The announcement included a planned 50 bp cut to banks’ reserve requirement ratios.
On Wall Street, copper and lithium miners gained. Freeport-McMoRan added 7.9%, Southern Copper advanced 7.2%, Albemarle rose 1.97% and Arcadium Lithium jumped 3.2%.
U.S.-listed shares of Chinese firms like Alibaba gained 7.9%, PDD Holdings rose 11.8% and Li Auto added 11.4%.
The news from China is “feeding through into parts of the U.S. market, where you see some more China-sensitive, more cyclical industries like metals and mining materials outperforming,” according to Zachary Hill, head of portfolio management at Horizon Investments.
The DJIA gained 83.57 points, or 0.20%, to 42,208.22, the S&P 500 added 14.36 points, or 0.25%, to 5,732.93 and the Nasdaq Composite advanced 100.25 points, or 0.56%, to 18,074.52.
The S&P 500 briefly moved lower in early trading after data showed U.S. consumer confidence unexpectedly declined in September amid mounting concerns over the health of the labour market.
Investors are looking for clues on the Fed’s next move after the U.S. central bank began its latest easing cycle last week with a 50 bp cut in interest rates.
MSCI’s gauge of stocks across the globe gained 4.51 points, or 0.54%, to 844.56, and reached a record high. The STOXX 600 index added 0.65%.
