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
The #1 Thing to Do Before You Claim Social Security (Sponsor)
Choosing the right (or wrong) time to claim Social Security can dramatically change your retirement. So, before making one of the biggest decisions of your financial life, it’s a smart idea to get an extra set of eyes on your complete financial situation.
A financial advisor can help you decide the right Social Security option for you and your family. 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.
Click here to match with up to 3 financial pros who would be excited to help you optimize your Social Security outcomes.
Have questions about retirement or personal finance? Email us at [email protected]!
By emailing your questions to 24/7 Wall St., you agree to have them published anonymously on a673b.bigscoots-temp.com.
By submitting your story, you understand and agree that we may use your story, or versions of it, in all media and platforms, including via third parties.
Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.
Latest from 24/7
