Stock markets are surging on the back of China's 'nth time' stimulus package, as large as the 2020 pandemic money dump. Pointing towards stimulus programs in the West about to rev up, starting with central banks cutting rates. All this with core inflation still stuck.

China is mostly likely in a recession, just look at the iron ore price which had fallen through its $100 support, heading towards 2020 lows, as the West's favourite economic support mechanism (on a good day), just don't mention geopolitical issues, which is also the factory to the world, whose indebted citizens like Gucci handbags.  For the nth time has begun a massive stimulus package that is akin to what was revealed in 2020 at the height of the COVID pandemic, except this time the Peoples Bank of China, although they have done this before, are supporting the depressed Chinese stock market with a cash injection of $114 Million.  Chinese stocks surged in similarity to 2008, when, yes, China also injected millions into speculation to have the Chinese bet more on, speculation.  The other aspect of the stimulus plan, for the nth time is to short up capital in Chinese banks, so, for the nth time the Chinese banks can lend to the ailing and insolvent developers. Who have been all underwritten by the Chinese government loans.    

All this, whole China's local governments are holding over $13 Trillion in debt.

But, not just China is now releasing stimulus into the economy, so are the Central Banks, who one by one, cutting rates despite sticky core inflation and GDP still in positive territory after the Federal Reserve's massive 0.50% cut,  with a U.S. job market remaining pumped, although it is looking precarious.  Why?  China's recession.  But, stimulus is risky as a blunt bet that it will spur growth, when $14 Trillion of stimulus in 2020 for COVID is all but dried up, and inflation went paparbolic in 2022.

In the meantime, stock markets are surging on a strange, and potentially dangerous time for markets.

Above Chart is the NASDAQ futures, slightly stalled from its all time highs on profit taking.  Can AI save us?