China Cuts Rates, Europe Central Banks Open Vaults

Central banks in Europe said they were ready to put billions of dollars into the financial markets to ease the current credit crisis.

According to The New York Times, "The central bank said it was “ready to contribute to orderly conditions in the euro money market” and that it would lend as much cash as banks wanted at its benchmark interest rate of 4.25 percent."

At the same time China cut interest rates for the first time in six years.

Bloomberg reports that "The People’s Bank of China reduced the one-year lending rate to 7.20 percent from 7.47 percent."

Those actions plus a promise by the Fed to provide emergency fund may put a net under the US markets when they open.

Douglas A. McIntyre