Shares rally on China stimulus hopes, strong European data
By Sam Forgione
NEW YORK (Reuters) - Stock markets worldwide rallied on Tuesday on hopes of more stimulus measures in China and on strong German trade data, while Brent crude oil prices also rose.
China's imports shrank far more than expected in August, falling for the 10th straight month, though exports fell less than expected. Analysts said the imports data could lead to further policy easing from the Chinese government in coming months.
Those hopes helped U.S. shares advance, while data showing Germany's imports and exports hit record highs in value terms in July underpinned gains in European stocks. Germany's benchmark DAX share index .GDAXI ended up 1.6 percent.
A late bounce in Chinese stocks, which pushed the Shanghai Composite Index .SSEC up 2.9 percent after earlier declines, also supported European shares.
"We had some nice buying opportunities with the selloff in August, and I think people are starting to take advantage of that and put money to work," said Larry Peruzzi, senior equity trader at Cabrera Capital Markets Inc in Boston.
"In China it seems like there is a willingness to continue with stimulus, so hopefully those markets will stabilize."
Brent crude prices rose as strength in stock markets helped the global oil benchmark recoup the bulk of its losses from the previous session.
Brent crude settled up $1.89, or 3.97 percent, at $49.52 a barrel. U.S. crude, meanwhile, settled down 11 cents, or 0.24 percent, at $45.94 per barrel. Continued...