Global financial markets continue the strong growth after the Bank of China decided to reduce two key interest rates and reserve requirements; now the stocks, oil and non-ferrous metals rise in price, and the dollar rose against the yen for the first time in five sessions, reports Bloomberg.
Return of risk appetite after a stormy Monday divestment leads to lower prices for government bonds in the US and other developed countries.
Major European indexes are rising by more than 3%; the composite index of the largest companies of Stoxx Europe 600 added 4.2%. Futures on the Standard & Poor's 500 jumped 4%, futures on the Chinese Shanghai Composite, which over the past two sessions lost 15%, rose 6.1%.
The dollar rose against the Japanese domestic currency to 120.09 yen from 118.41 yen at the close. During yesterday's trade, the dollar fell to the lowest level since January 16.
The dollar also rose against the euro, to $ 1.1509 from $ 1.1619 at the close of the North American market on Monday. Over the previous four sessions, euro gained 5.4%, which was the most significant rise of the single currency for the comparable period in March 2009.
The prices of copper are recovering from a minimum of six years; the metal rose in London trading by 2%, to $ 5050 per ton. Quotes of contracts for aluminum, nickel and zinc on the LME rose by more than 2%.
October futures for WTI crude oil rose 3.24%, to $ 39.48 per barrel, and Brent futures rose 3.37%, to $ 44.13 per barrel.
As reported, the People's Bank of China (PBOC, the central bank of the country) on Tuesday decided to reduce the key interest rates for the fifth time since November 2014, and revised the regulations on reserve requirements for banks, reports Bloomberg.