European stocks edged higher on Monday after a rout last week while government bond yields renewed their rise as oil prices firmed even as China delivered smaller rate cuts than investors expected. China’s central bank trimmed its one-year lending rate by 10 basis points and left its five-year rate unmoved.
That was a surprise to analysts who had expected cuts of 15 basis points to both as recovery in the world’s second largest economy has lost steam due to a worsening property slump, weak spending and tumbling credit growth.
“The small injection of stimulus by China’s central bank in the ailing economy has proved largely underwhelming given the scale of the challenges erupting across sectors, but it has given investors hope there could be more to come,” said Susannah Streeter, head of money and markets at Hargreaves Lansdown.
JPMorgan European Discovery Trust plc (LON:JEDT) is an investment trust company. The Investment Trust JEDT objective is to achieve capital growth from a portfolio of quoted smaller companies in Europe, excluding the United Kingdom.
