Stock markets surge on China stimulus [Video]

Stock markets and oil prices rallied Tuesday after China’s central bank unveiled fresh stimulus measures to kickstart growth in the world’s number two economy.

After a string of weak data that has fanned worries about the financial health of the country, China’s central bank said it would cut a slew of rates to boost growth.

Wall Street shares extended gains at the open, with the Dow and S&P 500 each up less than 0.1 percent after hitting fresh records the previous day.

China’s central bank gave markets a new boost after stocks rallied last week following the US Federal Reserve’s first interest rate cut in more than four years.

Shanghai and Hong Kong stock markets closed up more than four percent, as China unveiled some of its boldest measures in years as it faces a prolonged property-sector debt crisis, continued deflationary pressure and high youth unemployment.

The Paris stock market …