Commodities
Metals Extend Gains as China’s Measures Sustain Market Rally
- China says it will cut reserve requirement ratio for banks
- Demand hopes rest on Beijing’s future stimulus injections
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Copper and other metals rallied after China unveiled a plan to boost liquidity in its banking system, and data showing an expansion in US business confidence helped to underpin gains in America’s high-flying stock market.
A 0.5 percentage-point cut in the China’s reserve ratio requirement — which determines how much cash that banks have to keep on hand — will provide 1 trillion yuan ($139 billion) in long-term liquidity to the market, Chinese central bank governor Pan Gongsheng said at a media briefing Wednesday.