Global Markets React to Beijing's Stimulus Pledges

European and global markets had a mixed response to Beijing's latest stimulus promises, with Chinese stocks experiencing volatility due to a lack of detailed measures. Hong Kong shares initially rose but fell lower. Upcoming events include ECB's rate decision and key economic data from China.

In the wake of Beijing's recent stimulus pledges, global markets exhibited mixed reactions, particularly in China where stocks remained volatile. Investors were left seeking decisive details amidst promises that, while ambitious, lacked specifics.

Hong Kong's shares began the day on rocky ground before tumbling, contrasting with mainland China's stocks which largely saw gains. Analysts point to the absence of a concrete financial figure in Beijing’s plans as a possible reason for the varied performances, with foreign investors potentially more affected by this omission.

The broad measures undertaken by Chinese policymakers aim to address local government debt issues, bolster the property market, and reinforce state banks. Despite these efforts, concerns linger, especially with the reduction in China's consumer inflation in September and deepening producer price deflation, setting a sombre tone for European markets.

(With inputs from agencies.)