The People’s Bank of China lowered its benchmark lending and deposit rates by 0.25%, and it also lowered its bank reserve requirement ratio by 0.5% and removed its ceiling on most bank deposits. Another move was to cut the bank reserve requirements for rural banks by a half-point as well.
What investors and market participants will want to consider here is that this effort marks the fifth rate cut by China’s central bank since November. This is the third such effort to trim the reserve requirement ratio in 2015.
This move follows another 7.6% drop in the SSE Composite in Shanghai, down to 2,964.97. In short, China wants to lower its fallout in the markets, likely both at home and elsewhere in its trading partner nations. Elsewhere, market moves were seen as follows:
- The Nikkei 225 in Japan was down almost 4% to 17,806 and the Hang Seng in Hong Kong was up 0.7% to 21,405.
- The FTSE in London was last seen up 2.4%, the DAX in Germany was up 2.7% and the CAC in France was up 3.1%.
- While the S&P 500 futures were last seen up 58 points, the Dow Jones Industrial Average futures were up 477 points.
Sponsored: Tips for Investing
A financial advisor can help you understand the advantages and disadvantages of investment properties. Finding a qualified financial advisor doesn’t have to be hard. SmartAsset’s free tool matches you with up to three financial advisors who serve your area, and you can interview your advisor matches at no cost to decide which one is right for you. If you’re ready to find an advisor who can help you achieve your financial goals, get started now.
Investing in real estate can diversify your portfolio. But expanding your horizons may add additional costs. If you’re an investor looking to minimize expenses, consider checking out online brokerages. They often offer low investment fees, helping you maximize your profit.