Asian and European stock markets rally on stimulus hopes - as it happened

Japan's Nikkei surges by 7.7%, its biggest gain since 2008 after China pledges new spending measure to support growth

• Summary: Stimulus hopes boost markets
• UK manufacturing output weakens
• Introduction: Nikkei surges as Abe pledges tax cuts
• China plans new fiscal measures
• World Bank to Fed: Don't raise rates now

6.14pm BST

Apple's Tim Cook is on stage now, promising "monster announcements" across several product lines.

Apple CEO Tim Cook skips the usual updates for what he promises to be monster announcements across many product lines pic.twitter.com/ynNUy9Ucga

Related: Apple iPhone 6s launch: key points at a glance - live

5.50pm BST

There's robust trading in Apple shares today, as Wall Street prepares to see the company's latest wares unveiled.

28 million Apple shares have changed hands already, twice as many as the second most active company on the Dow, Intel.

Panoramic view of the auditorium 15' before #AppleEvent kicks off (photo via @DanielEran) #Apple pic.twitter.com/f8noM9urt5

Related: iPhone 6s? iPad Pro? Here's what you think Apple will announce today

5.04pm BST

Over in New York, hopes of Asian stimulus measures have crunched into fears of a US interest rate hike.

After that solid start, the Dow Jones and the S&P 500 just dipped into negative territory.

Stocks go red.

Never before have there been so many job openings: http://t.co/aqF8dmBPK6 pic.twitter.com/Zg1t4E3qXs

Wall Street is however proving to be something of a drag on sentiment - the latest employment numbers have shown a record number of job openings state-side and this is once again throwing open the possibility of the Fed gambling on a rate hike next week.

If conviction builds further here then even talk of renewed stimulus measures from Beijing will do little to placate a market that's worried about the wider global consequences of higher borrowing costs in the US, but for now it's the base metals miners that are pulling through much of the upside.

4.47pm BST

The other main European markets ended the day higher too, although Germany's rally rather fizzled out.

European Closing Prices: #FTSE 6229.01 +1.35% #DAX 10303.12 +0.31% #CAC 4664.59 +1.44% #MIB 22126.57 +0.84% #IBEX 10037.8 +1.74%

4.46pm BST

Another day, another chunky move in the stock market.

Britain's FTSE 100 just closed for the day, up 82 points or 1.35% at 6229. That's the highest closing level since the end of August:

3.46pm BST

Hmmm, the rally is fading somewhat:

Dow gives up early gains, down 150 points from high http://t.co/5aC3AEsPCb pic.twitter.com/AKWM3CsGbW

3.17pm BST

The NIESR think tank has warned that growth in the UK economy slowed over the summer.

It predicts that Britain's GDP rose by 0.5% in the June-August quarter, down from 0.6% in the three months to July.

Despite the slight softening, growth remains close to the estimated long run potential of the economy, but below the average rate of growth (0.7 per cent per quarter) observed since the start of 2013.

NIESR August UK GDP estimate +0.5% vs +0.7% prior http://t.co/cA2jNAIQ0E The GDP estimate from NIESR - Prior revised to +0.6% from +0.7% "

2.41pm BST

Wall Street has joined the rally. The Dow jumped 150 points, or nearly 1%, at the start of trading.

Dow rises 150 points after Japan's 8% surge buoys global stock markets. Apple up 1%, ahead of big event. http://t.co/A9OlUXl3FI

1.29pm BST

A quick recap:

It appears that the noticeable decline in both imports and exports from the recent China economic data has been shrugged away, with this perhaps linked to expectations that the People's Bank of China will ease monetary policy further.

It's still fear rather than fundamentals driving markets. On the way down its fear of losses but on the way up its fear of missing out.

World Bank chief economist Kaushik Basu's view that a Federal Reserve rate hike would trigger "panic and turmoil" echoes that of IMF head Christine Lagarde. Top officials publically coming out against a rate hike will make it harder for Janet Yellen to move in September.

1.22pm BST

The decline in Britain's manufacturing sector in July shows that the government's pledge to rebalance the economy is floundering.

So argues Chris Leslie MP, Labour's Shadow Chancellor:

"The increase in the trade deficit and fall in manufacturing output are both signs of George Osborne's neglect of the need for a balanced recovery.

"The trade in goods has sunk to a five year low and exports have not kept pace with the Chancellor's 'march of the makers' promise.

Related: UK goods exports suffer worst month in nearly five years

1.04pm BST

TUC General Secretary Frances O'Grady is concerned by that Britain's manufacturers suffered the biggest drop in output since May 2014.

She says:

"The sharp falls in manufacturing and exports suggest that the economy is entering tougher times. And with the failure to fix long-term problems, like Britain's low rates of investment and innovation, the government's severe spending cuts will put the recovery at even greater risk.

"These are worrying times for working people and their families, who remain hard-pressed after the longest fall in living standards on record. We need a better economic plan for a stronger and fairer economy that works for the many, not just the few."

1.01pm BST

These charts help to show why today's UK trade data (details here) is worrying:

The global slowdown has arrived on Britain's doorstep http://t.co/90zrYtYvkm @jillianfward pic.twitter.com/ZOwZWOCrXX

2 things really worry me about the UK recovery. The 1st is productivity. The 2nd is this. Today's stats won't help. pic.twitter.com/X4nc8e3vQa

12.59pm BST

Wall Street is expected to rally by around 1% when trading begins, in 90 minute time.

Conner Campbell of SpreadEX says:

The US open looks set to continue the buoyant market atmosphere this afternoon, with the Dow futures suggesting a 150 point jump when the Wall Street bell rings.

12.38pm BST

Associated Press now has full details of premier Li's upbeat comments at "Summer Davos" today:

China's No. 2 leader tried Wednesday to mollify foreign concerns about its economic slowdown, saying growth is in the "proper range" and Beijing has no plans to allow its currency to decline further.

Speaking at a meeting of the World Economic Forum in the eastern city of Dalian, Premier Li Keqiang said Beijing will stick to plans for market-opening reforms despite recent "fluctuations" in economic performance.

12.08pm BST

Despite today's gains, many stock markets are still lower than at the start of this year.

America's S&P 500, Britain's FTSE 100, Hong Kong's Hang Seng and China's Shanghai Composite have all now fallen into the red.

Select Equity Indexes (rebased to 100 at start of 2015): pic.twitter.com/i4BpgPA90K

11.57am BST

There were happy faces on China's trading floors today, as hopes of fresh stimulus measures sent the Shanghai index up over 2%:

11.18am BST

Back in China, premier Li Keqiang has declared that the country has succeeded in fighting off 'potential systemic financial risks'.

Li told a panel discussion at the "Summer Davos", in the port city of Dalian, that recent measures taken to calm market instability had worked.

China has successfully fended off potential systematic financial risks, Premier Li Keqiang says at Summer Davos in Dalian city

"(We) will persist with a market-oriented, law-based system to establish an open and transparent capital market."

10.23am BST

The drop in Britain's manufacturing output in July suggests growth is weakening this quarter, as the slowdown in China and beyond hits demand.

Howard Archer of IHS Global Insight says growth could drop to 0.5%, from 0.7% three months ago, or even lower.

Muted manufacturing activity and weakened exports is worrying for hopes that UK growth can become more balanced and less dependent on the services sector and consumer spending.

10.08am BST

Mike Rigby, head of manufacturing at Barclays, says British factories are finding it tough to get export orders in the current climate.

Here's his take on today's gloomy industrial data:

"It hasn't been a particularly good summer for manufacturing production and growth is hard-earned. Although macroeconomic conditions remain broadly supportive, it's surprising that lower oil prices haven't yet had more of a positive effect on the sector.

With demand in the Eurozone still sluggish and an uncertain international picture, manufacturing output appears to be is stuck in neutral."

10.07am BST

The UK' trade deficit widened in July. Latest leg in the services surplus vs goods deficit race won by goods. pic.twitter.com/ODtO3fnbAQ

10.00am BST

The disappointing drop in UK manufacturing output send the pound down almost half a cent against the US dollar, to $1.536

Weak UK manufacturing data sees sterling sell off, #GBPUSD down to 1.5360 RO pic.twitter.com/ejdJAnTbNp

9.52am BST

Two disappointing pieces of economic data from the UK just hit the wires, showing that Britain's manufacturing base is struggling.

UK industrial output shrank by 0.4% month-on-month in July, dashing hopes of a small rise. It was just 0.8% higher than a year ago.

Exports of goods decreased by 2.3 billion to 22.8 billion in July 2015, the lowest export figure since September 2010. This is attributed to decreases in semi-manufactures (specifically chemicals) of 1.0 billion and finished manufactures of 0.8 billion. Imports of goods increased by 0.3 billion to 33.9 billion over the same period.

9.23am BST

The prospect of more stimulus in Japan was a key factor behind today's strong rally, which dragged the Nikkei back from a seven-month low.

The Nikkei, which had earlier hit its lowest level since February, bounced after comments by Prime Minister Shinzo Abe raised expectations of more measures to shore up economic growth under his "Abenomics" stimulus program.

In remarks from Abe read to a Bank of America-Merrill Lynch conference in Tokyo, he pledged to cut corporate tax rates by at least 3.3% next year.

Japan's economy may require more emergency support... Which if you believe the markets is apparently great news.

8.56am BST

The promise of fresh stimulus from Beijing had a predictable effect on shares in China.

The Shanghai stock market joined the Asian rally with gusto, and closed 2.3% higher.

8.49am BST

Reuters has a good take on China's new pledge to boost spending, a day after trade data showed a worrying tumble in imports.

China will strengthen fiscal policy, boost infrastructure spending and speed up reform of its tax system to support the economy, the Ministry of Finance said, joining other steps by authorities to re-energize sputtering growth.

The ministry will accelerate major construction projects, bring in private financing through increased use of the public private partnership (PPP) model, standardize the management of local government debt and reform taxes, it said in a statement late on Tuesday.

8.33am BST

Japan's stock market has been one of the worst performers since China devalued the yuan last month.

The Nikkei's remarkable 7.7% leap today suggests that investors are now shaking off their worries.

"The selloff in Japanese equities has been excessive amid concerns over China's economic slowdown. Today's rally can be sustained once the market's perception of the Chinese economy improves."

8.25am BST

Budget airline Ryanair can also take some credit for today's upbeat mood.

Ryanair hiked its profit forecast by 25% this morning after stronger-than-expected passenger growth over the summer. Its shares have surged 9% in Dublin this morning to a new record high.

8.19am BST

The main European markets are rallying too; with the German DAX up 2.1% and France's CAC up 2.3%.

Shares in carmakers such as Renault, Daimler and BMW are all up around 5%, after China reported a rise in car sales last month.

. @BMW & @Groupe_Renault both up 5%...auto stocks getting lift after China auto sales August give some relief = +0.6% yoy

8.14am BST

Britain's FTSE 100 has jumped by 100 points at the start of trading, a gain of 1.7%, to 6246 points.

8.07am BST

European stock markets are open, sending traders racing to buy shares.....

It's time. @RobinKwong http://t.co/VQA0NGhKVR pic.twitter.com/hVAfdRA2ga

8.06am BST

Today's market rally is also being driven by hopes that the US Federal Reserve will not raise interest rates next week.

The World Bank's chief economist, Kaushik Basu, told the Financial Times that the Fed risks triggering "panic and turmoil" in emerging markets if it hikes at its September meeting.

7.40am BST

Good morning.

Global markets have been buoyed by China's new market intervention and the announcement from the China's Ministry of Finance (MoF) that they will speed up fiscal spending. Japanese markets have been the standout performer in Asia today, seeing a record daily rise off the back of plans to cut corporate tax rates....

Prime Minister Shinzo Abe announced plans for dramatic cuts to corporate tax rates. He stated that he planned to initially cut the current corporate tax rate of 35% by 3.3%, and push it down into the twenties over several years until it reaches as level that compares favourably in the international context.

A stormer of a session for the Nikkei sees it finish +1,343 points or 7.71% higher. FTSE100 forecast to start +100 points at 6246.

"Billions wiped onto pensions" a