China cuts rates, stock futures predict 400-500 point positive open in USA

SONY DSC

The Chinese have just cut rates and reduced the reserve requirements for banks. Now US stock futures are indicating a strong open to the upside. See, everything is fine. At least if you work for a high frequency trading firm.

Wall Street broadly is hoping, praying, that the central bank mojo will work again. We’ll see.

(From The BBC)

The People’s Bank of China cut its main interest rate by 0.25 percentage points to 4.6% after two days of stock market turmoil.

It is the fifth interest rate cut since November and will take effect on Wednesday.

The move has boosted European share prices further, with the FTSE 100 in London jumping 3.3% after the China move.

In Germany, the Dax was up by 4.4% and in Paris, the Cac was ahead by 4.6%.

On other European markets, Lisbon, Madrid, Moscow and Milan were all sharply higher.

Click here for the article.

So no problem folks. The central planners have everything in hand.