Dear Investors,
China's central bank cut reserve requirement ratio by 0.5 of a percentage point, the first such cut since December 2008, in a move to help boost liquidity and support the economy amid market turmoil in developed countries.The PBOC raised the reserve requirement ratio six times so far this year, and has raised benchmark lending and deposit rates five times since October.
The cut to the reserve requirement ratio will take effect from Dec. 5.China factory sector shrinks first time in nearly 3 years also fuel for this cut.
After the news Broke Metals & Oil moves higher and Silver trims loss to rise further by more than 1%.
The Federal Reserve and the central banks of the euro area, Canada, the U.K., Japan and Switzerland agreed to reduce the cost of offering dollar financing through swap arrangements."The purpose of these actions is to ease strains in financial markets and thereby mitigate the effects of such strains on the supply of credit to households and businesses and so help foster economic activity," the banks said.
The move lifted equities, while the dollar tanked.
U.S. stocks rallied Wednesday, with the Dow industrials chalking up their best day in more than 2 ½ years, as the Federal Reserve and five other central banks moved to help banks hit by Europe's debt crisis.
The announcement, which appeared to take investors by surprise, comes as European banks saw the cost of obtaining funding in dollars in the interbank market rise to a three-year high as the debt crisis prompted institutions to hoard cash.
The extension of the dollar swap lines essentially means that dollars will be available cheaply and on request for the next 15 months to Europe's troubled financial sector, which will probably greedily eat them up after being starved of much-needed dollar funding since the summer.Under the program, the Fed lends dollars to other central banks in return for their currencies. The foreign central banks then use auctions to lend dollars to financial institutions under their jurisdiction.
Earlier on Tuesday the cost of swapping euros for dollars via implied one-month cross-currency basis swaps rose to its highest level in three years.
Pending Sales of Existing U.S. Homes Exceed Forecasts With 10.4% Increase, far better than all economist expectation.
The index of pending home sales increased 10.4 percent, the biggest gain since November 2010, after falling 4.6 percent the prior month.This also shows recovery in real estate market in US, an indicator of improving economy. Also support Fed previous statement of raising interest rate in Mar12 or June12.The news further fuel upside moves in all base metals, copper today hit upper circuit in today morning trading on SHFE.
Over all sentiment for very short term look positive. On contrary this all will settle in some time if steps not taken to curb the EURO debt crisis.It could be an well scripted oasis from central banks in this deserted current economic system.
The cut to the reserve requirement ratio will take effect from Dec. 5.China factory sector shrinks first time in nearly 3 years also fuel for this cut.
After the news Broke Metals & Oil moves higher and Silver trims loss to rise further by more than 1%.
The Federal Reserve and the central banks of the euro area, Canada, the U.K., Japan and Switzerland agreed to reduce the cost of offering dollar financing through swap arrangements."The purpose of these actions is to ease strains in financial markets and thereby mitigate the effects of such strains on the supply of credit to households and businesses and so help foster economic activity," the banks said.
The move lifted equities, while the dollar tanked.
U.S. stocks rallied Wednesday, with the Dow industrials chalking up their best day in more than 2 ½ years, as the Federal Reserve and five other central banks moved to help banks hit by Europe's debt crisis.
The announcement, which appeared to take investors by surprise, comes as European banks saw the cost of obtaining funding in dollars in the interbank market rise to a three-year high as the debt crisis prompted institutions to hoard cash.
The extension of the dollar swap lines essentially means that dollars will be available cheaply and on request for the next 15 months to Europe's troubled financial sector, which will probably greedily eat them up after being starved of much-needed dollar funding since the summer.Under the program, the Fed lends dollars to other central banks in return for their currencies. The foreign central banks then use auctions to lend dollars to financial institutions under their jurisdiction.
Earlier on Tuesday the cost of swapping euros for dollars via implied one-month cross-currency basis swaps rose to its highest level in three years.
Pending Sales of Existing U.S. Homes Exceed Forecasts With 10.4% Increase, far better than all economist expectation.
The index of pending home sales increased 10.4 percent, the biggest gain since November 2010, after falling 4.6 percent the prior month.This also shows recovery in real estate market in US, an indicator of improving economy. Also support Fed previous statement of raising interest rate in Mar12 or June12.The news further fuel upside moves in all base metals, copper today hit upper circuit in today morning trading on SHFE.
Over all sentiment for very short term look positive. On contrary this all will settle in some time if steps not taken to curb the EURO debt crisis.It could be an well scripted oasis from central banks in this deserted current economic system.
Thanks and Regards
Rohit Saxena
Losers say it is hard and impossible, but winners say it is hard but not impossible." Rohit Saxena
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