Panic sets in in China: the following steps were taken:
- Interest rates were lowered by 25 bps to 4.60 from 4.85.
- Reserve Requirement Ratio (for big banks) lowered by 50 bps to 18.0 from 18.50.
- 22 Billion was pumped into economy for liquidity.
- Continued intervention in the stock market.
Global markets are stable for the most part with a mixed picture as of 7:20 AM (EDT Eastern Standard Time). Results are as follows:
- Asian markets are slightly negative (China: -1.27%), Hong Kong (-1.52%), Singapore (-1.46%), India (-1.22%), except for Japan (+3.2%) and Australia (0.69%).
- Latin American markets up (Mexico +1.30%, Brazil 0.47% and Chile 1.39%).
- European markets are mostly down by around -0.50%.
- Waiting on US open….. Canada was up 0.75%.
Of note is that commodity countries (Australia, Canada, Chile, Brazil, etc.) all rebounded.