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China-exposed European stocks rise after report of new stimulus

Published 10/10/2023, 10:11
Updated 10/10/2023, 10:15
© Reuters. FILE PHOTO: The Standard Chartered bank logo is seen at their headquarters in London, Britain, July 26, 2022.  REUTERS/Peter Nicholls/File Photo

LONDON (Reuters) - China-exposed European stocks rose on Tuesday after Bloomberg reported China is looking to increase its budget deficit for 2023, part of a new round of stimulus to help the economy.

Miners Anglo American (JO:AGLJ) , Antofagasta (LON:ANTO) and Glencore (LON:GLEN), and financial services companies Standard Chartered (LON:STAN) and Prudential (LON:PRU) all rose 3-5%.

Stephane Ekolo, global equity strategist at TFS Derivatives, said the news was "absolutely" driving price action in European assets.

"When China sneezes, the world catches a cold, so a new potential stimulus is seen as a positive catalyst," Ekolo said.

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