European stocks rose on Monday as investors shrugged off concerns about China’s slowing economy that had battered Asian markets earlier in the day. Wall Street was set to open higher after strong earnings from Morgan Stanley.
KEEPING SCORE: Most European markets were up by in midday trading. Germany’s DAX was up 1.5 per cent to 11,860.62 and France’s CAC 40 added 0.3 per cent to 5,159.41. Britain’s FTSE 100 gained 0.7 per cent to 7,041.08. Futures augured a strong start to the week for Wall Street. Dow futures were up 0.5 per cent at 17,859. S&P 500 futures were 0.5 per cent higher at 2,085.
CHINA STIMULUS: China’s central bank on Sunday cut the required reserve ratio for banks by 1 percentage point to stimulate lending into a slowing economy. The lower reserve requirement allows banks to lend out a higher proportion of their deposits. The Communist Party-run People’s Daily said the cut will release 1.2 trillion yuan ($194 billion) into the world’s second-biggest economy. The cut was bigger than anticipated, which unnerved investors. Official data showed last week that China’s economy grew by 7 per cent in the first quarter of the year, the lowest quarterly expansion since the 2008 financial crisis.