China’s central bank, the People’s Bank of China, has announced an interest rate cut of 0.25% on both its lending and deposit rates. The new rates, which take effect tomorrow, will lower the one-year lending rate to 6.31% and the one-year deposit rate to 3.25%.
The US futures market will jump all over this. The only thing that would have made it better is if the Bank of England had done the same thing. Alas, that didn’t happen, as the BoE announced this morning that it would leave interest rates at 0.5% and the asset purchase fund at a total of $506 billion.
US index futures rose sharply following China’s unexpected rate cuts. The DJIA futures index is up 0.54%, while the S&P 500 is up 0.75% and the Nasdaq is up 0.63%. European indexes are also up, led by the UK’s FTSE 100, which is up 1.29% and Germany’s DAX, up 1.02%. Asian exchanges were closed before the announcement was made, with Shanghai down -0.71% for the trading day, while Japan’s Nikkei rose 1.24% and Hong Kong’s Hang Seng rose 0.85%.
Paul Ausick
Sponsored: Want to Retire Early? Here’s a Great First Step
Want retirement to come a few years earlier than you’d planned? Or are you ready to retire now, but want an extra set of eyes on your finances?
Now you can speak with up to 3 financial experts in your area for FREE. By simply clicking here you can begin to match with financial professionals who can help you build your plan to retire early. And the best part? The first conversation with them is free.
Click here to match with up to 3 financial pros who would be excited to help you make financial decisions.
Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.
Editors' Picks
