Global Markets Hit Record High as China Unveils Major Stimulus Plan

Global stocks soared to new record highs on Tuesday following China’s announcement of sweeping stimulus measures aimed at bolstering its economy and capital markets. The People’s Bank of China (PBOC) revealed plans to lower borrowing costs and inject fresh liquidity into the financial system, along with new tools to help stabilize markets. In addition, measures to ease mortgage burdens on households were introduced.

The immediate response saw China’s Shanghai Composite Index and Hong Kong’s Hang Seng Index each surging over 4%, reaching multi-month highs. European markets followed suit, with the pan-European STOXX 600 index climbing 0.8%, driven by China-exposed mining and luxury stocks.

“While these measures are a positive sign, further targeted stimulus in areas like property and infrastructure will be crucial to sustain long-term growth,” noted Jefferies economist Mohit Kumar.

The upbeat mood extended into commodity markets, with oil prices rising by nearly 1.5% and copper prices hitting their highest levels in two months. Iron ore futures in China logged their biggest intraday gain in over a year, as investors grew more optimistic about future demand from China, the world’s largest commodity consumer.

U.S. stock futures also pointed to a higher open on Wall Street, with the S&P 500 gaining more than a quarter of a percent. The Dow and Nasdaq indices saw marginal increases, continuing the upward trend.