Can China stimulate the economy with interest rate cuts? | Morning Markets

Chris Leyland, Director of Investment Strategy, looks East to China, where an unexpected interest rate cut has been announced in a bid to stimulate the economy on the backdrop of high youth unemployment, problems with the property sector and a lack of foreign investment post Covid. The fact that China cut rates ahead of the Federal Reserve in the US illustrates an acknowledgment of challenges in the economy and a willingness to tackle them. Will this be the start of a major cutting cycle in China? Elsewhere in US equity markets and we see the technology led sectors which have had great success so far this year begin to cool slightly with marginal price falls coming through.