Global Markets React to China's Stimulus Amid Easing Cycle

China's recent stimulus measures are affecting global markets, with significant gains in Chinese blue-chips and Hong Kong's Hang Seng. However, the optimism is waning as concerns about structural issues in China and a downturn in the U.S. temper global growth narratives. European markets also face economic worries.

China's recent major stimulus is significantly influencing global markets, but its broader effects appear to be diminishing. Mainland blue-chips and Hong Kong's Hang Seng showed considerable gains, initially boosting related benchmarks in Australia and South Korea, though this momentum soon faded.

Despite initial enthusiasm, analysts are skeptical about the stimulus addressing core structural issues, leading to modest reactions on Wall Street. Adding to the cautious outlook, weakening U.S. consumer confidence has curbed optimism about global growth, impacting European market futures.

Overall, the global easing cycle is advancing, with the People's Bank of China and potentially the U.S. Federal Reserve cutting rates. Noteworthy events today include speeches from Fed Governor Adriana Kugler, ECB's Elizabeth McCaul, and the BoE's Megan Greene, as well as a rate decision by Sweden's Riksbank.

(With inputs from agencies.)