Overseas Trading: China Rate Cut Lifts European Markets

Following another brutal day for Chinese stocks, the People's Bank of China (PBOC) cut interest rates

Aug 25, 2015 at 8:22 AM

It was a mixed finish in Asia, though the losses were far more severe than the wins. China's Shanghai Composite plunged another 7.6%, just a day after its 8.5% plunge rattled global markets. After the close of trading, the People's Bank of China (PBOC) cut interest rates for the fifth time since November, and lowered banks' minimum reserve requirements.

Elsewhere, Japan's Nikkei reversed early gains to slump nearly 4%, as a stronger yen weighed on exporters and continued weakness in oil prices pressured energy names. On the other side of the coin, Hong Kong's Hang Seng added 0.7%, while cooling tensions with Pyongyang propelled South Korea's Kospi to a 0.9% advance.

The PBOC's interventions are boosting European markets at midday. Germany's DAX is 4.4% higher after a stronger-than-forecast Ifo business climate index. Elsewhere, London's FTSE 100 is up 3.3% -- on track for its first daily win in 11 -- and France's CAC 40 has soared 4.4%.

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