GLOBAL MARKETS-Shares inch towards record high as China trims key rate

Published 18/11/2019, 14:36
Updated 18/11/2019, 14:45
© Reuters.  GLOBAL MARKETS-Shares inch towards record high as China trims key rate

* China trims short-term interest rate, in surprise move

* World shares index less than 1% from record high

* Wall Street starting week at its own record high

* Markets look to Fed minutes, ECB Lagarde speech

* Pound pushes up as opinion polls favour Tories

* Graphic: World FX rates in 2019 http://tmsnrt.rs/2egbfVh

By Marc Jones

LONDON, Nov 18 (Reuters) - World shares were within touching

distance of a record high on Monday, after Beijing surprised

markets by trimming a key interest rate for the first time since

2015.

In the latest show of support for its economy, China's

central bank cut rates on seven-day reverse repurchase

agreements by five basis points to 2.50% The news helped Asia's main markets get the week off to a

solid start .CSI300 .N225 .HSI . Europe's STOXX 600 and FTSE

.FTSE followed suit with 0.1% to 0.3% gains, though the German

DAX and French CAC40 remained in the red. .EU

MSCI's 49-country main world share index .MIWD00000PUS

inched 0.1% higher, leaving it less than 1% off its early 2018

record high, with Wall Street gains looking likely. .N

"It is a slow start to a slow week, but risk is marginally

on," said Societe Generale strategist Kit Juckes.

He added it was now hard to avoid concluding that China was

slowly easing monetary policy, having held off in recent months,

perhaps wary of drawing fresh criticism from U.S. President

Donald Trump during trade talks.

"Maybe that's what 5 basis points (cut to repo rate) is all

about. It's not rocking the boat, but it's a shift."

The pan-European STOXX 600 index .STOXX was extending its

six-week winning streak, helped by a bidding war for Spanish

stock exchange BME. The STOXX index is only 8 points short of

its record high of 415.18 points from mid-April.

Japan's Nikkei .N225 gained 0.5% to stop just short of its

recent 13-month top and Hong Kong's Hang Seng climbed 1.35%

despite ongoing protests there. Shanghai blue chips recouped

early losses to close up 0.8% .CSI300 . .SS .T

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers
© 2007-2025 - Fusion Media Limited. All Rights Reserved.