Morning Bid: New highs beckon as China eases, Europe sneezes

Wall Street looks set to grind out another record on Tuesday as world markets were enlivened by long-awaited monetary easing in China - rate cuts aimed at underpinning a wobbling economy that's sowing weakness across the world, not least in Europe. Chinese stock indexes surged more than 4% on Tuesday and the offshore yuan hit its strongest level against the dollar in 16 months after a series of moves by the People's Bank of China to loosen lending conditions. Less than a week after the Federal Reserve's outsize half point rate cut, PBOC boss Pan Gongsheng said banks' reserve requirement ratio would be cut by 50 basis points, freeing up about 1 trillion yuan ($142.21 billion) for new lending.