China's Market Promises Propel Global Stocks Amid Uncertain Monetary Policies

China's markets rally on the latest vague promise of support from authorities, focusing on a shift to 'moderately loose' monetary policy. While this boosts stocks, caution persists in foreign exchange. Australian and European markets also react with key central bank meetings ahead in Europe and Canada.

China's equity markets surged to their highest levels in nearly a month after the government promised renewed support for the struggling economy. The latest shift from "prudent" to "moderately loose" monetary policy, albeit vague, has sparked confidence among investors, leading them to buy stocks actively.

Despite the positive movement in equities, China's foreign exchange and bond markets exhibited signs of caution, with the yuan remaining stable and bond yields dropping to record lows. This skepticism points to lingering doubts about the actual potential for economic growth.

While European stocks experienced some gains due to China's policy shift, global attention now turns to upcoming central bank meetings, with key interest rate decisions anticipated in Canada, Europe, and Switzerland. Australia's central bank made headlines with a dovish approach, boosting confidence about hitting inflation targets.

(With inputs from agencies.)