Well, it was definitely another eventful day on the global markets today. That's all from the biz live page for tonight, but join us again tomorrow at 06:00 for more breaking business news.
- Wall Street negative at the close
- China cuts interest rates by 0.25 percentage points
- Shanghai closes 7.6% lower
- BHP Billiton profits tumble
The problem the Chinese economy has is that for many years rapid growth has been fuelled by an even more rapid growth in debt, professor Michael Pettis of Peking University says. "They've got to get debt under control. By lowering interest rates, they've actually relieved the debt pressure, so they've given them[selves] a little bit more time. If they use the time to impose reforms, that's a good thing. If they use the time to allow debt to continue to grow, that just means we're going to have more of a difficulty in the next few years."
BBC News Channel
China's stock market falls have been part of a correction in its market, says Frances Coppola, a financial commentator. "There was a very evident bubble that has burst, and it's now coming back down towards where it was a year or so ago. The question is whether [the Chinese market] will fall further than that." But she adds: "What's happening on the Shanghai index is to do with China, but what's happening everywhere else is really more to do with general market jitters."
Boeing has raised its outlook for China's long term aircraft demand, despite a slowing economy and ongoing stock market volatility. The US firm expects China will need 6,330 aircraft over the next 20 years, a 5% rise from last year's estimate. "Despite the current volatility in China's financial market, we see strong growth in the country's aviation sector over the long term," Randy Tinseth, vice president of marketing at Boeing Commercial Airplanes, told reporters in Beijing.
Global markets may still be in turmoil but there are still deals going on. Dublin-basedMedtronic, which makes medical equipment, said it has agreed a $458m deal for US firm Twelve. The private firm makes heart valve replacement devices. The deal is expected to complete in October.
While the rally in US and European stocks may suggest things are picking up again, analysts are warning where markets go from here is still uncertain. Terry Sandven, chief equity strategist at Bank Wealth Management, says today's rally is being driven by "value hunters" attracted by the low stock valuations. But a "wall of uncertainty" about global growth remains, he warns.
Alibaba's chief executive Daniel Zhang (pictured right) has said that employees should forget about the firm's share price and focus on their jobs, after shares dropped below their flotation price of $68, theFinancial Times reports. Alibaba's share price rose to $119 in November.
US traders have taken the time to "sit back... and wipe their brow" after yesterday's sell off, the BBC's Samira Hussain says. Speaking about today's rebound, she says: "Some pretty important stocks have dropped by more than 14%, so for some traders this has now become more of an opportunity." However, concerns remain about the Chinese economy, she adds.
The Dow Jones has only got one stock that has fallen at the moment - drug firm Merck - the other 29 have risen.
But if you look at the Dow over the past three months, the picture's a little more sobering:
Although Wall Street has made sharp gains today, some analysts are cautious about the rebound. Even with today's gains, the Dow and the S&P are on track for the their worst monthly losses since February 2009, while the Nasdaq could have its steepest monthly fall since November 2008. "Today's rally can be attributed to value hunters who are slowly moving into the market as valuation levels now seem reasonable," said Terry Sandven, chief equity strategist at US Bank Wealth Management in Minneapolis, while warning that a "wall of uncertainty" about global growth remains.
US bond prices have fallen as investors sell US government debt and other perceived safe-haven assets. In addition, encouraging US housing data and consumer confidence have helped to revive bets that the Federal Reserve will raise interest rates at its next policy meeting in September. "If the stock market does stabilise here, it's going to be a close call for a September rate hike," said Richard Schlanger, portfolio manager at Pioneer Investments USA.
India Business Report Editor
More strong stuff in our interview with India's central bank governor Raghuram Rajan, who says central bankers are facing an "immense burden" to act.
"I think it is quite legitimate for central banks to say at some point we can't carry the burden ourselves - in fact we may not have the tools to do everything that is asked of us. Don't keep asking us to do more because at some point we get into territory where the consequences may be more bad than good if we actually act."
There are a variety of forces causing market volatility, says India's central bank governor Raghuram Rajan. "I don't think all of them are a reflection on China's future," he tells the BBC's Karishma Vaswani. There are "a number of concerns that the global economy has, including when rates normalise. The [US] Federal Reserve may well be the first off the block - there are questions about when that will happen. There are also questions about the levels of various markets. Are they too high?"
Spare a thought for those poor billionaires.According to Bloomberg, yesterday the world's 400 richest people lost about $124bn (£79bn) after the global stock market turmoil, leaving them with a measly $3.86 trillion between them. Microsoft's Bill Gates fortune dropped by $3.2bn, while Amazon's Jeff Bezos lost $2.6bn, for example. But given that US markets are rebounding this afternoon, they might be ok after all.
BBC News Channel
There are "huge pressures" on the Chinese economy, including a manufacturing and investment slowdown, a stock market crash and the devaluation of the yuan, says Miranda Carr, head of China thematic research at investment bank BESI. She says China's rate cut announcement today is a sign that there are many more problems that the government is trying to stave off.
BBC business reporter, New York
What a difference a day makes. There's a lot more green on the NYSE big board. It's certainly a far less frantic day than Monday on the floor, though just as much activity - and a lot more media around.
All 30 stocks on the Dow Jones industrial average are in positive territory, with JP Morgan the biggest riser, up 4.5%. On the S&P 500 there are just three fallers, with Best Buy the biggest riser up a whopping 17%.
Bargain hunters are out in force in New York after Wall Street suffered its biggest rout in four years on Monday. The Dow Jones is now up 366 points, or 2.3%, to 16,237 points, the S&P 500 gained 41.2 points to 1,935.9 and the Nasdaq composite jumped 120 points, or 2.7%, to 4,647 points.
Wall Street jumped on Tuesday, with the Dow Jones Industrial Average opening up 1.8%, while the S&P 500 jumped 1.9% and Nasdaq is up 3.5%.
The New York Stock Exchange is invoking the rarely used Rule 48 for a second time on Tuesday in a bid to prevent chaotic trading when markets open in 10 minutes. The rule was deployed on Monday to prevent panic selling - though as the Dow fell 1,000 points in minutes perhaps it didn't quite work.
Just in case you're wondering where Chinese interest rates now stand, the one-year lending rate is down by 0.25 percentage points to 4.6%, while the one-year savings rate is down by the same amount to 1.75%.
Wall Street is set for strong gains after China's central bank cut interest rates to support its economy. Dow Jones futures are up 600 points, or 3.8%, while the broader S&P 500 futures are up 72.8 points, or 3.9%. That's how much the S&P fell yesterday, as it happens.
Kallum Pickering, senior economist at Berenberg, said China's decision to cut rates sent a clear signal that Beijing, which has intervened several times this year to keep China's high-powered growth story on track, was still prepared to respond to market concerns.
[This] has proved to markets that China is willing to act. Investors have been waiting for them to act and they have. Is this sufficient? It might not be but it does set a precedent that they are engaged and looking to prevent any further declines."
Our economics editor tweets:
Copper prices rose 1.2% to $5,040 a tonne on the London Metal Exchange after China raised interest rates. Leon Westgate, analyst at Standard Bank, said: "There's a short-covering rally going on. These are more measures designed to help underpin the Chinese economy. We'll have to wait and see if the rally is sustainable."
After rising by as much as 3.4%, theFTSE 100 is now falling back a bit to be 2.7% higher at 6,060 points. Miners remain the top risers, but computer chip designer ARM Holdings has muscled its way into the top winners, with a 6.7% gain.
The BBC's John Sudworth in Beijing says China's decision to cut interest rates by 0.25 percentage points today should not be viewed as a shock decision, given that it is the fifth such move since November. He says the government's broader aim is to ensure the economy continues to grow by about 7% annually - and cutting rates should stimulate more investment in China.
Some strong criticism for China's central bank from David Goldman, managing director of the Hong Kong investment bank Reorient.He says interest rate cuts by the People's Bank of China have been "piecemeal". Speaking on Bloomberg Television he says the bank has failed to explain "what its intentions are". He said that Chinese interest rates remain "simply too high" and that a 2-3% cut is needed.
The BBC's Asia Business Correspondent Karishma Vaswani has interviewed the chief of India's Reserve Bank Raghuram Rajan. He does not think that we are on the verge of a crisis similar to the 1997 Asian financial meltdown. But he says "we need to be vigilant". The full interview will run at 17:00 BSTon Global on BBC World News.
The governor of the Reserve Bank of India has been reacting to the turmoil in the Chinese financial markets. Simon Atkinson is the editor of India Business Report. He tweets:
Peter Thal Larsen is the Asia Editor of the analysis service Breakingviews. He tweets: