Australian Stocks Are On A Tear

Quinn Rooney/Getty Images

The Australian market jumped about 1% on opening today following news of interest rate cuts in China and stimulus measures by the European Central Bank.

The People’s Bank of China announced a 0.4% cut in the lending rate, along with shaving 0.25% in the one-year deposit rate.

Locally, iron ore stocks headed up after a long run down chasing the plunging price of the commodity.

Investors are hoping the China rate cut will act as a stimulus and improve demand for iron ore.

Fortescue Metals was up almost 10% to $2.95, regaining some of the lost ground of recent weeks.

BHP was up 4% to $32.99. The banks were steady.

By late morning the market was up 1.2%.

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