US stocks boosted by China rate cut

 

(Open): US stocks opened higher after China announced a surprise rate cut and the head of the European Central Bank hinted at further stimulus action.

The Dow Jones rose 158.02 points, or 0.9%, to 17,877.02, while the S&P 500 climbed 18.54 points to 2,071.29.
The technology-focused Nasdaq was 34.32 points higher at 4,736.19.
In an attempt to boost growth, China will cut its one year deposit rate to 2.75% from 3.0%, and trim its one-year lending rate to 5.6% from 6%.
Sentiment among investors was also boosted by comments from Mario Draghi, the head of the European Central Bank (ECB).
Mr Draghi said the ECB was ready "step up the pressure" and take more measures to try to boost growth in the eurozone.
The ECB has already cut its benchmark interest rate to 0.05% and begun some asset purchases, but Mr Draghi said the bank could alter "the size, pace and composition of our purchases".
The comments triggered a fall in the value of the euro, which was down more than a cent against the dollar at $1.2427.