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China stock market closes on BIGGEST surge in almost THREE YEARS – Europe stocks BOOSTED


But today saw the Chinese stock market soar by more than 4 percent – its best daily performance since 2015 – off the back of positive comments from President Xi Jinping pledging to protect private businesses.

The Communist leader said in a letter: “Any words and practices that negate and weaken the private economy are wrong.

“Supporting the development of private enterprises is the Party Central Committee’s consistent policy.”

The CSI300 Index closed 4.3 percent up at 3,270 – its best day since November 2015.

The Shanghai Composite Index witnessed its biggest one-day gain since March 2016, with a jump of 4.1 per cent.

While ChiNext saw a surge of 5.2 per cent.

Jasper Lawler of London Capital Group said: “Asian shares bounced higher on Monday, as Chinese stocks extended their rebound for a second straight session, pulling European futures higher in the process.

“Beijing’s pledge of support for the economy is overshadowing geopolitical concerns over Saudi Arabia, Italy and Brexit.”

Meanwhile in Europe, the FTSE 100 was starting the day on an upward note and was 16 points higher as of around 10:30 BST.

Germany saw its DAX rise by 67 points, or 0.58 percent, and France noted a boost of 15 points for its CAC 40 Index, a change of 0.31 percent.

The Stoxx Europe 600 was up by 21 points, or 0.28 percent, in early trading.

Italy saw its FTSE MIB rise by 157 points, a boost of 0.83 percent, in a positive turnaround after Moody’s slashed the nation’s sovereign debt rating to one notch above junk status.

Moody’s lowered the rating to “Baa3” from a previous “Baa2” just five months after warning of a possible downgrade for the eurozone’s third-largest economy.

The ratings agency said a prime reason for its cut was the government’s recently announced budget, which forecast a deficit of 2.4 percent of gross domestic product (GDP) next year, three times higher than the previous target.

The indebted nation has a nominal GDP of €1.89 trillion in 2018, indicating a deficit goal of roughly €45 billion.

Moody’s said in a statement: “That makes Italy vulnerable to future domestic or externally-sourced shocks, in particular to weaker economic growth.”

Deputy Prime Minister Luigi Di Maio said on Monday that the Italian government was ready to discuss its budget targets with European Union authorities.

The Italian government is expected to send a letter on its budget to the Commission by noon.

European Economic Affairs Commissioner Pierre Moscovici said the European Commission would meet on Tuesday to discuss the response, adding that he could not say when it would take a decision.

He said: ”When you are an EU member and a member of the single currency, of the euro zone, you must respect a number of joint rules.”



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