Good morning, and welcome to our rolling coverage of the financial markets, the world economy, business and the eurozone.
Coming up today…. financial markets are hovering around their record highs, as the long rally refuses to peter out.
Asian markets have hit three-year high this morning, led by the Chinese indices after Beijing gave its banks permission to hold fewer capital reserves – freeing up more cash for loans.
Stan Shamu of IG says the cut to reserve requirement has boosted hopes that China will hit its growth targets.
There has been plenty of talk recently around the measure China is taking including increasing spending on railways and broader infrastructure along with lowering reserve required ratios.
Confidence might just be growing that China will hit its growth target after all, not that many ever doubted this will be the case.
It’s also clear that China is focusing on the small businesses and rural areas as the next growth drivers. Equities in China have also extended their gains in response to the recent measures and this morning’s CPI data, with the Hang Seng and Shanghai Composite gaining ground.
Also coming up today…
Greece’s new cabinet will be getting down to work, after last night’s reshuffle saw economics professor Gikas Hardouvelis named as the new Greek finance minister.
The Office for National Statistics is publishing its assessment of UK industrial and manufacturing production in April, at 9.30am. And the NIESR thinktank releases its assessment of UK growth over the last three months, at 3pm.
And I’ll keep an eye on Brussels, where policy chiefs including Olli Rehn (commissioner for the euro) are speaking.
Very handsome, and modest with it….
I’ll be tracking all the key points through the day.