European stocks rally on China measures, FTSE ignores UK data

By FXStreet FXStreet (Mumbai) – Stocks on the European indices kept their opening gains intact as markets continue to cheer the news of further policy measures rolled out in China. While renewed global optimism spread from the Asian markets also supports.

Asian stocks rallied on Wednesday on the back of news that China’s Ministry of Finance will roll out more forceful fiscal policy to boost the slowing economic growth in the country, including investment in major construction projects.

Moreover, officials also announced some income tax changes to dividends in order to encourage long-term investment in Chinese shares.

FTSE unmoved by downbeat UK fundamentals

The UK’s benchmark, the FTSE 100 extended its previous rally as the UK traders were little impacted by the sluggish UK’s trade balance and industrial output figures. Meanwhile the UK’s FTSE 100 index gains 1.68% and trades at 6,248.

UK trade deficit widened above estimates to £3.4 billion while the total industrial production, which includes extraction of oil and gas from the North Sea, extended the drop by 0.4% between June and July.

Shares of Anglo American rallied over 6%, while mining giant Glencore jumped 4.61%. Shares of financial services company Hargreaves Lansdown PLC each rose about 4.50%.

Among the …read more

Source:: FX Street