Chinese Infrastructure Investment Sends American Equities Skyward

Friday morning, the Chinese government announced it would be embarking on a $157 billion dollar infrastructure investment program. The initiative, meant to boost the struggling economy, has had a significant effect on American equities. Following the announcement, shares of Caterpillar CAT rose around 4.27 percent to $88.40, while shares of John Deere DE traded up roughly 1.74 percent around $78.40, both reacting to an anticipated increase in Chinese heavy equipment demand. Construction equipment wasn't all that saw a boost though, companies with a copper interest saw a spike following expectations that the new Chinese projects would require a large supply of the metal. As a result, Freeport-McMoRan Copper & Gold FCX was up roughly 7.51 percent, trading around $39.07, while Southern Copper SCCO rose about 4.97 percent to $34.23. Shares of the Chinese ETF FXI traded up 2.61 percent Friday around $33.58.