European markets today were all over the place with the European Central Bank publishing a widely expected interest rate cut whose aim was stimulating economic growth.

The German DAX index skyrocketed by 1.5%, pointing to the optimism among investors whereas other European markets marginally gained at a lower pace.

On the other hand, the situation in the Asian markets was a little bit different. Hong Kong jumped three point three per cent and Shanghai had one point two per cent in the Composite Index while there was not much other movement.

These movements come amid ongoing trade tensions between the United States and China, which have left global markets jittery.

What the European Central Bank decided is part and parcel of broader efforts to counteract the slowdown in the Eurozone while inflation is still below the target level in spite of the earlier monetary measures.

For Germany, the manufacturing sector became the leading force of the DAX’s performance since the conditions of the export of automakers and industrial firms have been improved.

Regrettably not all is rosy as the fears persist very much about the sustainability of this growth which is largely brought about because of the geopolitical uncertainties that seem to still be the stumbling block to global trade. At the same time, bond yields in Europe have been stable which is a sign of a cautious investor sentiment despite the rally in equities.

ISI analysts argue that the European Central Bank’s decision could relieve in the short term but concerns are raised of the structural bottleneck within the Eurozone economy that may limit the long-term gains.

China’s market performance is really stable- nothing seems to threaten it, although there could be trade tensions getting stronger with the U.S. Beijing, which, after the development of technological innovation and the increase of private consumption, has been the trust booster for the investors.

This National People’s Congress the Chinese government has declared that further stimulus measures are yet to come as it is trying to keep the development pace of economy strong in face of the pressures coming from the outside.

Along these lines have both given the world market a little break while at the same time fears of U.S. trade policies remain keen the world over when global investors make their moves.