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Chinese Turmoil

Panic sets in in China: the following steps were taken:

  1. Interest rates were lowered by 25 bps to 4.60 from 4.85.
  2. Reserve Requirement Ratio (for big banks) lowered by 50 bps to 18.0 from 18.50.
  3. 22 Billion was pumped into economy for liquidity.
  4. 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.