Stock markets diverged and oil prices fell on Wednesday as China’s latest measure to bolster its economy, the world’s second-largest, failed to sustain another global rally.
Shanghai closed up 1.2 percent and Hong Kong advanced 0.7 percent after both markets surged more than four percent Tuesday following a slew of Chinese interest-rate cuts this week.
But European stocks broadly retreated while Wall Street’s main indexes finished mostly lower, with the Dow and S&P 500 both retreating from records.
“We’ve had consecutive days of a run-up and I think it’s expected that the market takes a bit of a pause here,” said Peter Cardillo of Spartan Capital.
China’s central bank on Wednesday announced a cut to its medium-term lending facility, the interest for one-year loans to financial institutions.