U.S. markets and stock ETFs kicked off the New Year on a strong note after China’s central bank plans to enact stimulus measures to support the economy, fueling bets on an improved global outlook.

On Thursday, the Invesco QQQ Trust (NASDAQ: QQQ) was up 1.0%, SPDR Dow Jones Industrial Average ETF (NYSEArca: DIA) was 0.7% higher and SPDR S&P 500 ETF (NYSEArca: SPY) rose 0.4% as the major benchmarks were on pace to close at their highest levels yet

“In general, there isn’t a lot of negativity among investors,” Rick Meckler, partner at Cherry Lane Investments, told Reuters.

Supporting the positive sentiment on Thursday, the People’s Bank of China stated it will loosen monetary policy by cutting the amount of reserves banks are required to hold at the central bank, which would free up cash for lending, the Wall Street Journal reports.

“Even if there is bad news you see that central banks have put quite a solid foundation under the market,” Bas van Geffen, a quantitative analyst at Rabobank, told the WSJ. “Whatever stimulus the PBOC does in China means the economy will do better.”

The markets were also hopeful of an upcoming initial trade deal as U.S. and Chinese officials set a date to sign a phase-one trade deal, ending a protracted trade war between the two largest global economies. President Donald Trump also plans to travel to Beijing for negotiations on the second phase of the trade deal.

Many market observers attributed the recent stock market rally to improving relations between the U.S. and China as the two move towards a January 15 trade deal signing. The surge last year helped make 2019 the best year for the market since 2013, and many expect the momentum to continue forward through the month.

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