China goes for the growth
Today the People’s Bank, China’s central bank, cut the reserve ratio requirements for the country’s banks to 17% from 17.5%. The move will inject about 685 billion yuan ($105 billion) into the financial system
Shanghai’s back–stocks plunge 6.4% overnight
Overnight the Shanghai Composite Index plunged 6.4% on fears that the central bank was looking to tighten liquidity and that government leaders were thinking about policies to reduce speculation
Happy talk from central banks rallies shares
In anticipation of a weaker yen and central bank intervention, bad news on the Japanese economy produced a huge rally in Tokyo with the Nikkei 225 index soaring 7.16% on Monday.
No news–good or bad–from global central banks for a while
With central banks going–largely–silent for a month, the financial markets are going to be on their own for a while and dependent on the direction of oil prices and reports of corporate earnings.
As faith in central banks goes, so goes the market
The market’s faith in central banks will be tested if the Bank of Japan and the Fed don’t deliver this week. But I will also be watching to see if the market falters a bit even if they do deliver.
Stocks, oil gain as central banks intervene–again
Central banks just can’t seem to help themselves. Once again, seeing the financial markets in distress, today central banks rode the rescue with promises of lots of cash
Never mind: People’s Bank rushes to support Shanghai stocks
What’s funny–in an “Oh No” instead of a “Ha, Ha” kind of way–is that the strong intervention Tuesday by the People’s Bank didn’t actually produce a rally to recoup any of yesterday’s 7% loss
People’s Bank jumps the gun by cutting interest rates ahead of next week’s meeting of China’s leaders
The People’s Bank decided not to wait for next week’s plenary session of the leaders of China’s Communists Party before cutting interest rates to 4.35%
Are markets losing faith in central bank powers?
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All for a parade? China resumes direct share purchases to support stock market; seems to increase sales of U.S. Treasuries
To subscribe to JAM you need to fill in some details below including, ahem, some info on how you'll pay us. A subscription is $199 (although if you're subscribing with one of our special offers it will be lower) for a year for ongoing and continuing access to the...The People’s Bank says stability has returned to the Shanghai stock market–but this could be just another set up for a further market retreat
To me the People’s Bank has misread what the markets were afraid of. The markets weren’t afraid that the Chinese government wouldn’t pull out its usual bag of tricks to prop up stock prices. Instead financial markets were afraid that the usual tricks wouldn’t work. And those fears haven’t been removed by the July 15 report of 7% economic growth
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