7 Dec 2021
European Stock Futures Soar with Chinese Rate Cut
The Index Today
The Index Today — European stock markets are expected to rise on Tuesday with the laxation of Chinese monetary policy amidst decreasing fears of Omicron’s effect on the economy.
DAX futures in Germany traded 0.7% higher at 2am ET (0700 GMT), while CAC 40 futures rose by 0.9%. Additionally, the FTSE 100 futures contract in the U.K. grew by 0.3%.
The People’s Bank of China’s (PBOC) decision to reduce the reserve requirement ratio (RRR) by 50 basis points is geared towards economic development while also seeking to relieve the pressure on debt-ridden property developers. This, in turn, has also positively contributed to the current growth of European stocks.
With reassuring reports of the Omicron variant’s milder symptoms, global equities have since rebounded. Crude prices have also increased on Tuesday with crude futures trading 1.5% higher at $70.55 per barrel by 2am ET.
Gold futures have grown 0.2% to $1,783.65/oz. and the EUR/USD pair rose 0.1% at 1.1293.