Global markets rebound after China cuts interest rates to support weakening economy
BEIJING — Global markets rebounded Tuesday after China's central bank cut its key interest rate to support growth in the world's second-largest economy. Earlier, China's main stock index closed sharply lower for a fourth day.
European markets recovered almost all their losses from Monday, with most rising at least 4 percent, while U.S. stocks were expected to open higher and oil prices traded higher.
Hours after China's Shanghai stock index slumped to close 7.6 percent lower — adding to Monday's 8.5 percent loss and taking the benchmark to its lowest level since Dec. 15 — the central bank swung into action.