Insurers open positively as the market soars above 5,000

The S&P/ASX 200 (ASX: XJO) (Index: ^AXJO) has opened strongly this morning, pushed higher by financial and insurance stocks.

Just before midday the benchmark was up 50 points, surpassing 5,000 for the third time this year. Our biggest insurers, including Suncorp (ASX: SUN), QBE (ASX: QBE) and Insurance Australia Group (ASX: IAG), are all up over 1%, with QBE leading the way with a 1.7% rise.

The market has been boosted by reports that the People’s Bank of China said banks would now be allowed to set their own lending rates. The move hopes to stimulate the world’s second largest economy and return growth to positive trend.

IG market strategist, Chris Weston says the rally is more of a “psychological boost” than anything else, it shows that China is trying to support increased growth.

In addition to the insurers, the big financials also opened strongly, with Macquarie Group (ASX: MQG) up 3.3% in early trading. Surprisingly our biggest miners are lagging the market with only modest gains across the board.

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Motley Fool contributor Owen Raszkiewicz does not have a financial interest in any of the mentioned companies. 

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