A look at the day ahead in European and global markets from Rae Wee
Beijing’s latest stimulus pledges were met on Monday with a mixed and volatile response in Chinese stocks, with investors showing no consensus view on promises over the weekend that were long on intent but short on details.
Hong Kong shares got off to a choppy start before turning decisively lower, in contrast with their peers in mainland China which mostly traded higher.
Some analysts attributed the divergent performance to the lack of a dollar figure for the package, which may have mattered more to foreign investors than to their Chinese counterparts.
The sweeping measures – from helping local governments tackle their debt problems to supporting the property market and replenishing state banks’ capital – underscored policymakers’ commitment to supporting the ailing Chinese economy.
But the limited scope of efforts to boost domestic consumption remains a huge concern…
