China cuts interest rates again. This has always been good for a ramp higher. Sneaky Chinese always do this over the weekend.
If markets have moved 2% all year, it's no bubble, and someone posting repeatedly that it's a bubble that sets up the onset of the mother of all stock market crashes ... they are wrong. I don't even see wiggle room here for anyone with common sense. I posted a two line post. Perhaps you prefer the three large paragraph multi-font rants from S2007S. If so, put me on ignore and continue following the S2007S circus. But stop posting these replies suggesting I didn't present my position ( I did very clearly ) or that I've said the everyone is wrong.
BTW: For the people who want to trade China - there's no reason to use ETFs. Use China A50 futures on SGX (denominated in USD, lots of liquidity). Symbol is XINA50 on IB, 2k$ margin per contract.
Wait a minute....what's that....another rate cut coming out of China today....like I said before every week or so another central bank is cutting interest rates....before you know it this entire world will be running on QE and zero interest rates....now why would China lower rates. I thought they were the power house of the global world economy that they were the new leaders and growing faster than any other economy in the world...what's that another rate cut How could this possibly be....it doesn't seem real...China cutting rates hahah. Yes indeed. Doesn't anyone see what's happening. One of the biggest economies in the world is slowing and once they slow the world slows....with China slowing means the world is slowing ...don't believe anyone who tells you otherwise....this is a big red flag but yet everyone is ignoring it....you have to know that you can only build so many ghost cities and ghost malls and ghost buildings......China cutting rates isn't news to be excited about. Its actually a warning of what lies ahead. They need to keep their gdp propped up and will do anything and everything possible to do so....notice how they cut rates after the market plunge...just think how every central bank and especially the fed here claims they don't act on market behavior ....that's a lie....the fed and central banks around the world only work now to prop up markets and that's what China just did.... China Cuts Interest Rates After Market Plunge By KEITH BRADSHER JUNE 27, 2015 HONG KONG — Acting a day afterthe Shanghai and Shenzhen stock markets plunged more than 7 percent, China’s central bank cut interest rates on Saturday and reduced the reserves that certain banks must hold.The two measures send a signal that the government may not be eager to see an abrupt end to a stock market rally that has seen prices more than double in the last 12 months. The rally has been underpinned by speculative trading heavily financed with borrowed money. Young, often poorly educated investors have been betting on further appreciation even as business managers, with more information on the true health of their companies, have reportedly been selling heavily.“We think today’s move is mainly driven by the government desire to support a bull market,” Lan Shen and Shuang Ding, two economists at Standard Chartered, said in a statement on Saturday evening.Keeping the stock market buoyant, through measures like the interest rate cut, could help the Chinese government sell part of its stakes in government-owned enterprises that have incurred huge debts.Previous sharp drops in the stock markets this year have been quickly countered by optimistic statements in state-controlled media. But Saturday’s moves, which included the fourth reduction in interest rates since last November, were unusual in so closely following a stock market nose-dive.Yet both monetary policy moves on Saturday were carefully calibrated to limit their effect. China’s economy has already begun to stabilize in recent weeks, and the People’s Bank of China, the country’s central bank, has been concerned that it not feed another round of speculative lending and borrowing.The People’s Bank cut interest rates by only a quarter of a percent, to 4.85 percent for one-year bank loans, and to 2 percent for one-year bank deposits. The central bank also told banks that specialize in agricultural loans and loans to smaller businesses that they could hold slightly smaller reserves against their deposits, freeing them to lend more.But the central bank pointedly did not reduce the reserve requirement ratio for large banks, which represent more than half of the country’s financial system.The lower ratio and the reduced interest rates were to take effect on Sunday.Economic measures like monthly surveys of corporate purchasing managers show that the Chinese economy remains fairly weak but is no longer deteriorating. A slide in housing prices that began in the spring of last year appears to have leveled off and even reversed in some cities.“The recent data that we had was definitely not good,” Louis Kuijs, the chief economist for greater China at the Royal Bank of Scotland, said in a recent interview. “But it wasn’t a disaster.”
Greek central bank put out a statement saying they don't know if banks will open tomorrow ...... Of course they will....by either today or tomorrow a deal will be made and all markets will surge and everything will be forgotten ....they always get the deal done in the final hours....every bailout has worked liked that
Here is that live blog to catch all the latest developments as they unfold....remember Greece will not default .....and if they do just buy the dip
Greece’s Creditors Reject Aid Extension, Worried Citizens Line Up for Hours at ATMs (UPDATED) Jun. 27, 2015 4:13pm Dave Urbanski BRUSSELS (TheBlaze/AP) — Greece’s place in the euro currency bloc looked increasingly shaky on Saturday after eurozone nations rejected a month-long extension to its bailout program and the prime minister called for a risky popular vote on the country’s financial future.Worried Greeks queued outside banks for cash amid the uncertainty, while eurozone finance ministers deciding to hold a meeting without Greece to assess how to keep the euro currency union stable in the face of heightened risks that Greece could drop out.
Notice how it says the ecb has been increasing the emergency credit to banks as people rush to pull money out... That is showing us once again they will not let Greece default....they keep backing Them up every step of the way.... 1:45 p.m.The European Central Bank faces a major decision.It has been allowing Greek banks to draw emergency credit from Greece's central bank, a financial lifeline that has been keeping Greece's four major banks going during the country's tense bailout negotiations with creditors. The ECB has been slowly increasing the emergency credit to compensate for the increase in withdrawals from Greek banks.But the ECB has said it can only continue such assistance if the banks are basically solvent. A failure by Greece's government to get more aid before its bailout ends Tuesday and a big payment to the International Monetary Fund is due could prompt the ECB to decide the Greek banks are not financially solid any more.Capping the aid would quickly force Greek banks to limit withdrawals — but such controls could take Greece a step closer to leaving the 19-nation eurozone.ECB President Mario Draghi has said it's up to elected officials to decide Greece's fate. Analysts say the central bank wants to give politicians every chance to negotiate a deal.12:50 p.m.Two opinion polls indicate most Greeks want to keep using the shared euro currency and would prefer a deal with Greece's European partners rather than a rupture.Gain® For Every RoomGain® SponsorThe polls published Sunday were both conducted before Prime Minister Alexis Tsipras declared early Saturday that he was calling a referendum on financial proposals made by Greece's creditors in return for continuing to fund the country with bailout loans. Still, they provide an indication of public sentiment.In the poll by Alco for the Proto Thema Sunday paper, 57 percent said they believed Greece should make a deal with its EU partners while 29 percent wanted a rupture. A separate poll by Kapa Research for the To Vima newspaper found 47.2 percent of respondents would vote in favor of a new, painful agreement with Greece's creditors, compared to 33 percent who would vote no and 18.4 percent undecided.Both nationwide polls were conducted from June 24-26. The Alco poll had a margin of error of 3.1 percent while Kapa Research's was 3.09 percent.___12:25 p.m.A Greek finance official says the government expects the European Central Bank to continue approving emergency liquidity assistance that Greek banks can draw even after Tuesday, when Greece's international bailout officially expires.The ECB was expected to meet Sunday to decide what action to take about Greece. The central is bank is under pressure to end that emergency assistance.A decision by Prime Minister Alexis Tsipras to call for a national referendum on creditor demands in exchange for bailout loans has thrown Greece's negotiations with its international lenders into turmoil. In response, other nations in the 19-nation eurozone are refusing to extend Greece's bailout program beyond its Tuesday expiration date.Alternate Greek Finance Minister Nadia Valavani told private Mega television on Sunday "we are expecting the funding of Greek banks to continue normally via the ELA after Tuesday."Worried Greeks have formed lines at ATM machines all weekend and some machines were running out of cash Sunday morning.Now man's best friend isn't carpet's worst enemy.STAINMASTER® SponsorValavani said the country's banks could see "business as usual" next week if they receive the emergency support "so long as there is calm" and Greeks don't attempt to withdraw all their savings.