The week was uneventful except for the drop on Friday. Friday started heavily in the red on news that the Securities Association of China has made it easier to short stocks. This was done by allowing fund managers to lend shares to short. Reports are starting to show that China’s economy is beginning to slow to a pace that hasn’t been seen in six years. China was quick to respond dropping the bank reserve ratio to help stimulate the economy.Their reserve ratio is still above the global average, but they are planning on dropping it further.
China is now following the lead of the ECB and Japan in trying to stimulate the economy. It seems the United States is the only one on the other side of that coin as they figure out how to ease out of their stimulus. China wasn’t the only foreign entity in the news.