5 things to start your day: Europe

Good morning. Stocks rise in Asia after China unleashes a slew of support measures. Crude oil also gains amid rising Middle East tensions. A

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Good morning. Stocks rise in Asia after China unleashes a slew of support measures. Crude oil also gains amid rising Middle East tensions. And the debate goes on over how fast the Fed will go in this easing cycle. Here's what people are talking about.

China stimulus

China's central bank unleashed an unprecedented blitz of policy support for the economy, as authorities made their boldest swing so far to hit this year's annual growth target of about 5%. People's Bank of China governor Pan Gongsheng cut the amount of money banks must hold in reserve to the lowest level since at least 2020, and reduced a key policy rate at a rare briefing in Beijing on Tuesday. That marked the first time both measures were slashed on the same day in at least the past decade, underscoring the urgency of his task. Following the latest measures, Asian stocks advanced, with shares in Hong Kong outperforming.

Oil climbs, too

Crude oil also rose, joining in the buoyant risk mood during Asian session. The measures announced out of China could support growth and energy demand in the world's biggest oil importer. Concerns over the flagging Chinese economy and the prospect of increased supplies from OPEC+ have combined to undermine oil prices. Brent crude futures are still down by around 14% so far this quarter. Moreover, a major Israeli strike on Hezbollah targets in Lebanon kept tensions high in the Middle East. Elsewhere in commodities, industrial metals also climbed, led by copper and zinc.

Door left open

Since the Federal Reserve kicked off its easing cycle with a half-point interest-rate cut, the market's focus has shifted toward how fast and how far the central bank will go from here. A handful of Fed officials on Monday left open the door to additional large rate cuts, noting that current rates still weigh heavily on the US economy. Traders have been wagering on nearly three-quarters of a point of easing by year-end, suggesting at least one more jumbo rate reduction is in store. Investors are now awaiting data on the Fed's preferred price metric and US personal spending later this week. The Federal Open Market Committee next meets on Nov 6-7.

Apple's late-day plunge

Friday was supposed to be a good day for shares of Apple Inc., with the iPhone maker set to be a big winner from the quarterly adjustment of major stock indexes. And for most of the session, that's how it played out — until about 10 minutes before the closing bell. By the time it rang, Apple had sunk more than 2% from its intraday high to close in the red, a surprise reversal that has left market watchers guessing who or what could have triggered it. And my colleague Lu Wang examines here.

More details needed

British businesses have one key concern about Prime Minster Keir Starmer — Almost three months into his tenure, there's still a dearth of details about how his new Labour administration plans to get the UK economy firing. Speculation is rife about potential levies on capital gains and wealthy people in Chancellor of the Exchequer Rachel Reeves's budget on Oct. 30. Businesses are putting off investments as they await details of the budget, a survey by S&P Global found on Monday, exacerbating fears Labour's messaging is undercutting its growth goals.

Coming up

We get Germany IFO business climate and rate decisions from Hungary and Nigeria, along with US Conference Board consumer confidence later in the day. Fed Governor Michelle Bowman speaks. OPEC releases its annual World Oil Outlook. What is the trade to avoid? For the rest of this year, where is the best investment opportunity outside of the US? Share your views in the latest MLIV Pulse survey.

What we've been reading

This is what's caught our eye over the past 24 hours. Merrill's former market expert says this is different from 1999 Barclays, Bank of America helped Orcel buy Commerzbank stake French billionaire is resigned to PM's tax-the-rich signal Climate change is so bad, even the Arctic is on fire Boeing offers union 30% wage hike in bid to end strike Visa faces Justice Department antitrust case on debit cards

And finally, here's what Mary is interested in this morning:

Chinese stocks may have finally received the sustainable boost they needed. Policymakers are throwing the kitchen sink at the economy, which is exactly what markets needed. This may be China's whatever it takes moment. While more interest-rate cuts were broadly expected, as was the easing of lending restrictions on the housing market, the main surprises are the direct support for equity markets and policymakers coming out as a united front. Allowing funds and brokers to tap PBOC funding to buy equities will lend a huge assist to the beleaguered stock market. This shows the broader commitment by policymakers to stem the rout in equities, beyond the regular support from the so-called national team. The impact of measures to spur M&A is another positive in reigniting animal spirits and anemic business investment. How much this prompts inflation and supports consumption may be more questionable given how much of household wealth has been depleted. It will come down to how effective the buying of unsold homes is and a necessary recovery in house prices. That may take a bit longer to see visible results. While the devil may be in the details, the sentiment boost from the barrage of headlines is much needed. Mary Nicola is a macro strategist for Bloomberg's Markets Live team, based in Singapore.

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