NEW YORK (Reuters) – Global equity markets surged on Monday, lifted by talk of more stimulus from China and by a broad rally on Wall Street that overcame a plunge in Boeing shares after one of its newest jets crashed, while U.S. debt yields rose on improved risk appetite.
Traders work on the floor of the New York Stock Exchange (NYSE) in New York, U.S., March 11, 2019. REUTERS/Brendan McDermid
China’s main bourses clawed back almost half the 4 percent they lost on Friday as the country’s central bank chief pledged billions of dollars of cuts to taxes and fees to shore up an economy growing at its slowest pace in almost three decades.
U.S. stocks followed strong gains in Europe with the tech-heavy Nasdaq rising 2 percent and the benchmark S&P more than 1 percent after Wall Street posted losses every day last week.
MSCI’s gauge of global markets posted its biggest gain in seven weeks while European shares notched their best day in four weeks.
“This market, it comes in waves. Everybody who missed the rally in January and February is looking to buy the dip,” said Dennis Dick, a proprietary trader who is head of market structure at Bright Trading LLC in Las Vegas.
“It’s buy the dip, it’s back,” Dick said.
The rally on Wall Street given the decline in Boeing’s shares was especially impressive, said Michael James, managing director of equity trading at Wedbush Securities in Los Angeles.
“It’s a very strong sign of overall market strength,” James said. “After the weakness in the markets last week, things have gotten a little bit oversold,” he said.
The Dow rebounded after Boeing Co, the index’s best performing component this year, pared steep losses after some airlines grounded the company’s new 737 MAX 8 passenger jet following a