source from:WSJ
MARKETS  TODAY'S MARKETS
Global Stocks Inch Higher After China Rally
Chinese stocks soar on hopes for Shenzhen-Hong Kong trading link

By RIVA GOLD
Updated Aug. 15, 2016 5:20 a.m. ET
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Stocks and commodities mostly drifted higher Monday, with China leading gains on reports that a start date for the Shenzhen-Hong Kong trading link would soon be announced.

The Stoxx Europe 600 inched up 0.3% in morning trade, led by a 1.4% rise in the auto sector. Shares of Peugeot SA and Volkswagen AG were up more than 2%.

Futures pointed to a 0.2% opening gain for the S&P 500. The U.S. index has inched up for six of the last seven weeks, and ended Friday at its second-best level in history.

Disappointing retail sales data announced last week helped erode expectations for the Federal Reserve to raise interest rates. Fed-funds futures, used by investors to place bets on central bank policy, show a less than 45% probability of a rate rise by December, according to CME Group.
That should continue to offer support to U.S. equities, analysts said, even at relatively high valuations.

While dependence on central bank stimulus is “not healthy or good,” it should “keep the show going,” said Alastair Winter, chief economist at Daniel Stewart.
“I think the U.S. equity market is going to be up and down in a range,” he said, noting earnings have likely been through the worst, but economic growth is unlikely to support much more of a rally.

Earlier, the Shanghai Composite Index rose 2.4%, led by shares of brokerages, after Hong Kong Economic Journal reported the trading link could be announced as soon as this week and data showed mortgage lending drove China’s new loan growth last month.

The scheme would let Hong Kong investors buy Shenzhen stocks, and Shenzhen investors buy Hong Kong stocks.

Markets elsewhere in Asia rose, although Japan’s Nikkei Stock Average closed with small losses after Japanese growth figures missed expectations and revised data from the Bank of Japan showed weaker underlying inflation.

In commodities, Brent crude oil rose 1.1% to 47.50 dollars a barrel after posting its best week since April. Copper and nickel futures inched higher, while gold was flat at 1,343 dollars an ounce.