Investors hope Beijing’s move will help the global economy by easing tensions with the US, so diminishing the chances of a damaging trade spat; increase the competitiveness of China’s trading partners; and reduce the need for the Chinese authorities to tighten monetary policy to damp inflation, as the stronger renminbi should curb import prices.

Whether or not the currency will move sufficiently or have the ability to deliver this panglossian list of outcomes, the shift in Beijing’s policy has allowed markets temporarily to forget the somewhat dismal raft of consumer-focused economic data emanating from the US over recent weeks.

Traders also apparently feel salved by signs that distress in the eurozone may be fading a touch.  More from the Financial Times here.  May require registration.