PARIS (Reuters) – Major European stock markets were in the green on Tuesday morning, following a sharp rise in Asian markets after the announcement of economic stimulus measures in China.

In Paris, the CAC 40 gained 1.12% to 7,592.42 points at around 07:40 GMT. In London, the FTSE 100 gained 0.49% and in Frankfurt, the Dax gained 0.78%.

The EuroStoxx 50 index rose by 1.0%, the FTSEurofirst 300 by 0.80% and the Stoxx 600 by 0.63%.

Futures on Wall Street point to a virtually unchanged opening for the Dow Jones and the Standard & Poor’s 500, while the Nasdaq could gain 0.11%. Investors across the Atlantic are awaiting the publication on Friday of the monthly PCE price index, the preferred measure of inflation by the US Federal Reserve (Fed).

In China, the central bank unveiled Tuesday its biggest stimulus package since the COVID-19 pandemic to pull the economy out of its deflationary phase and back toward the government’s growth target. This will include cutting reserve requirements for the country’s major banks and lowering interest rates.

The announcement sent the MSCI index of Asia-Pacific stocks (excluding Japan) to a high since April 2022.

In Europe, the luxury (+2.37%), basic resources (+4.18%) and energy (+0.45%) sectors are driven by the prospect of an acceleration in growth in the world’s second largest economy.

In corporate news, TUI is up 2.24%. Europe’s leading tour operator confirmed its annual forecasts and medium-term targets on Tuesday after a good summer season.

DHL is up 2.15% after saying it is targeting 50% revenue growth by 2030.

British engineering group Smiths Group fell more than 6% after reporting a drop in annual profit.

In Paris, Legrand dropped 2.15% after announcing that it anticipated a turnover of between 12 and 15 billion euros by 2030, while Stellantis gained 1.27%, the manufacturer having left the door open to a renewal of the mandate of its CEO.

(Written by Claude Chendjou, edited by Augustin Turpin)

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