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LONDON – Global markets rose on Thursday, boosted by China's decision tocut interest rates, hopes that the Federal Reserve will considernew support for the U.S. economy and speculation Europe ispreparing to give Spain financial aid. China cut its benchmark lending rate by a quarter percentage pointto 6.31 percent for the first time since 2008 to support growth inits cooling economy, the world's second-largest. The move is the strongest sign yet that authorities in Beijing aredetermined to avoid a sharp slowdown. Chinese economic growth hasbeen one of the pillars of the global economy in recent years, sothe move boosted sentiment in financial markets worldwide. Germany's DAX closed 0.8 percent higher at 6,144.22 while France'sCAC-40 rose 0.4 percent to 3,071.16. Britain's FTSE 100 gained 1.2percent to 5,447.79. Madrid's Ibex was up 0.3 percent, while its10-year bond yield slumped to 6.04 percent from 6.30 percent beforethe bond auction results. Wall Street also rose, with the Dow Jones industrial average up 0.6percent to 12,490.13 and the S&P 500 rising 0.4 percent to1,320.62. Further boosting markets, Fed Chairman Ben Bernanke said thecentral bank is prepared to take further steps to support the U.S.economy if it weakens. A day earlier, three Fed officials suggestedthat the central bank may need to do more to help the economy. Although most analysts do not expect the Fed to offer new stimulusmeasures at its next policy meeting June 19-20, Bernanke's commentsreassured investors worried about a slowdown in the world's largesteconomy. In Europe, which has been a key source of turmoil for financialmarkets in recent weeks, the mood was lightened by reports thatSpain may get financial aid. Spain's government cannot afford to rescue its banking sector butis reluctant to accept a full-fledged bailout from its eurozonepartners, as that would mean giving up control over some of itsdomestic policies. Investors hope that European officials will agree to a compromisesolution — giving Madrid the money but reassuring it that itwill not have to take harsh new austerity measures. "There is speculation that EU officials are coordinating some formof support for Spain, especially for its banking sector, butdetails of what this will entail is lacking," said Mitul Kotecha,analyst at Credit Agricole CIB. In the meantime, the hopes for a rescue boosted Spain's bondmarkets, helping it raise money in a debt auction. Although itsborrowing rate for 10-year bonds was higher than earlier auctions,it was lower than the rate international investors were demandingin the secondary bond market — where issued bonds are tradedfreely. The improved market sentiment also helped the euro, which rose to$1.2562 from $1.2546 late Wednesday in New York Earlier in Asia, stock indexes had closed higher. Japan's Nikkei225 index added 1.2 percent to 8,639.72, Hong Kong's Hang Senggained 0.9 percent to 18,678.29 and South Korea's Kospi indexjumped 2.6 percent to 1,847.95. Australia's S&P/ASX 200 climbed 1.3 percent to 4,108.60.Benchmarks in New Zealand, Taiwan and Indonesia also rose, butthose in mainland China and Singapore fell. Benchmark oil for July delivery was up 30 cents to $85.32 perbarrel in electronic trading on the New York Mercantile Exchange.The contract rose 73 cents to settle at $85.02 in New York onWednesday. The dollar rose to 79.63 yen from 79.18 yen late Wednesday in NewYork. ___ Pamela Sampson in Bangkok contributed to this report. We are high quality suppliers, our products such as China Audio Video Equipments , Stage Lighting Equipment Manufacturer for oversee buyer. To know more, please visits Brass Musical Instrument.
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