Over the weekend, People’s Bank of China cut banks’ reserve ratio requirement. This aggressive move reflects serious concern on the part of the Chinese government about the slowing economy.
It is not news to investors that these days stocks often jump on intervention by central banks on worries about weak economy.
Chinese action has stopped slide in stock markets worldwide. It has even boosted oil prices. Interestingly gold ,which often rises on monetary easing, has been hit with selling over the last couple of hours.
Greece remains on the forefront.