Stock Market Update

[BRIEFING.COM] China's Shanghai Composite soared 8.1% today. It was a two-pronged move tied to policy stimulus efforts and a fear-of-missing-out trade.

Reports today indicated that the People's Bank of China told commercial banks to start lowering mortgage rates in batches and that the standing facility rates for maturities up to one month were cut by 20 basis points.

With today's gain, the Shanghai Composite is up 21.4% in the last five trading sessions. It will now remain closed until October 8 in observance of the Golden Week holiday.

What's interesting is that copper prices ($4.52, -0.08, -1.7%) are down today and so is the iShares China Large-Cap ETF (FXI 31.92, -0.25, -0.8%). One notion that could be filtering through now is that a short-term overbought posture will invite some healthy profit taking when Chinese markets reopen.

In any case, it is clear in the standing of European markets (STOXX Europe 600 -1.0%) and the U.S. market (mixed and little changed) that the latest moves by China are not having the same global impulse as they did last week.