Iron ore, copper, and lithium stocks are soaring this week after China’s central bank announced a series of stimulus measures. The People’s Bank of China (PBOC) introduced interest rate cuts and property market support, triggering a rally in commodity prices and resource stocks. The S&P/ASX 200 Materials Index surged 2.4% on Tuesday and followed up with a 2.7% gain on Wednesday, marking its largest two-day rally since November 2022.
This surge comes as investors hope China’s measures will help its sluggish economy regain momentum. However, skepticism lingers among analysts about the long-term effectiveness of the stimulus.
China’s Central Bank Rolls Out Stimulus Measures
The PBOC made several key moves this week to stabilise China’s economy. These included a 20-basis point cut to the seven-day repo rate, which reduced borrowing costs for banks and businesses. The repo rate cut also lowered the medium-term lending facility…
