Tuesday’s trading session opened on a positive note in Paris, in the wake of moderately favorable momentum on the world’s stock markets : the CAC 40 gained 0.21% in the morning, flirting once again with the 7,900-point threshold.
Markets are keeping a cool head, focusing on signs of monetary easing from Asia, as well as on a number of leading US corporate releases. Against this backdrop, defensive European sectors such as utilities and telecoms are pulling the indices higher, with monetary policy decisions the order of the day.
China and Australia unite to ease monetary policy
The most significant economic news came from Asia. China and Australia both announced cuts in their key interest rates on Tuesday, confirming market expectations but also underlining the persistent challenges facing their economies.
In Beijing, the People’s Bank of China (PBOC) lowered its prime lending rates for one- and five-year loans by 10 basis points, to 3.0% and 3.5% respectively. This is the first cut since October. The move is aimed at bolstering China’s flagging economy, where domestic demand remains sluggish and the real estate sector continues to weigh on growth. The one-year rate is used as a benchmark for the majority of loans, while the five-year rate has a particular influence on property loans.
Read also > [STOCK MARKET UPDATE] Trade reprieve between Washington and Beijing : temporary relief on world markets
Featured photo : © Getty Images