BHP Billiton Limited (ASX: BHP) may have led the market's downward charge on Monday but its shares are back in full flight today, having more than reversed yesterday's decline. The shares were trading for $31.04 at around midday, up 3.1% for the session after having closed at $30.10.
So What: Demand for BHP Billiton's shares has likely increased as a result of a series of measures being taken by China to stimulate growth in its weak housing market. The market has remained weak over the last 12 months or so, impacting the level of demand for iron ore and thus acting as a heavy drag on the commodity's price.
As such, a recovery in the industry would almost certainly bode well for iron ore and for the miners producing it. As reported by the Fairfax press, some of the measures being taken to stimulate growth include a reduction in the minimum down-payment for a second home (from 60% to 40%) and an easing of restrictions to use retirement savings to buy a home.
In addition, it's also looking likely that the Chinese government could reduce interest rates further in the near future which would provide even greater support to the nation's growth prospects.
Rio Tinto Limited (ASX: RIO) also lifted 2.5%, while Fortescue Metals Group Limited (ASX: FMG) rose 2.1%.
