RE: Good morning all8 Oct 2024 08:49
(Alliance News) - The FTSE 100 is called to open lower on Tuesday, as the absence of more stimulus measures in China knocked market confidence.
Though the Asian nation said it was "confident" of meeting its 5% growth target this year, on early rally in the Shanghai Composite fizzled. The index jumped some 10% in early trade, but gains eased and it was up 4.5% shortly before the London open.
"Tuesday's press briefing from China's top economic planner, the National Development & Reform Commission, was supposed to be the big moment, the one where Beijing unleashed a stimulus bazooka. Instead, it was more of a pop gun. While officials paid lip service to hitting their economic targets and promised vague "further support," there was no meaningful policy boost. The market reaction? Immediate disappointment. Hong Kong stocks tumbled from boom to bust in a heartbeat, leaving traders scrambling to figure out what's next," SPI Asset Management analyst Stephen Innes commented.
"It's clear the market wanted more, and Beijing's reluctance to roll out a bigger package is raising serious doubts about the sustainability of this rally. With global risk appetite already on shaky ground, China's lack of decisive action could be the pin that bursts the bubble. A historic moment may be looming for Chinese equities, but instead of the rocket fuel investors were hoping for, all they're getting is the market equivalent of a flat, day-old soda. Traders are watching closely, but without a serious commitment from policymakers, this rally may have already peaked."
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