China A50 Index soars on rate cuts and upbeat PMIs!
Stocks in Asia have surged higher on Friday as positive economic data and the prospect of a fast recovery from the coronavirus pandemic raised optimism. China's A50 index soared to a 2-year high, just 4% lower than its all-time high at around $15,000 made in May 2015.
The People's Bank of China (PBOC) which acts as the central bank of the People's Republic of China slashed its relending and rediscount rate by 25 basis points to help small businesses in rural sectors hit by the impact of Covid-19.
Further adding to the optimism was a private survey which showed that China's services sector has grown at its fastest pace in over a decade. The Caixin/Markit Services Purchasing Manager's Index (PMI) recorded 58.4 for the month of June which was the highest number since April 2020.
China's A50 Index, also known as the FTSE China A50 Index, can be traded on with Admiral Markets UK Ltd via the China A50 Index Futures CFD (Contracts for Difference) USD symbol. The index is comprised of the top 50 companies from the Shanghai and Shenzhen Stock Exchanges and includes Chinese companies such as the Bank of China, PetroChina and CITIC Securities among others.
Below is the long-term, monthly price chart of the China A50 Index Futures CFD (USD) contract available via Admiral Markets on the MetaTrader trading platform.
Source: Admiral Markets MetaTrader 5, #China50_N0, Weekly - Data range: from 13 May 2012 to 3 July 2020. Please note: Past performance is not a reliable indicator of future results.
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