UK shares slipped on Wednesday, reversing gains from the previous session as investors questioned the effectiveness of China's recent stimulus measures. While initial optimism fueled a rally after China announced its largest stimulus package since the pandemic, doubts arose about whether the scope was sufficient to address deep-rooted economic issues and revive demand.
- UK shares slipped on Wednesday, retracing gains from the previous session, as investors questioned whether the optimism over extensive stimulus measures in China was overdone.
However, the optimism faded as market watchers questioned whether the scope of proposed measures was extensive enough to fix deep-rooted issues in China and spark a sustained resurgence in consumer and industrial demand. "Monetary policy remains unlikely to move the needle on Chinese growth ... the Chinese economy needs fiscal stimulus and monetary policy alone isn't sufficient to revive domestic demand," analysts at BCA Research said in a note.The banking and life insurance sectors lost about 0.8% each.However, industrial miners and precious metal miners built on gains from the prior session, rising 1% and 0.
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