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China's Rate Reform Helps Markets Extend End of Last Week Recovery
China announced some changes in its interest rate framework that is expected to lead to lower rates. This helped lift equity markets, which were already recovering at the end of last week from the earlier drubbing. Chinese and Hong Kong shares led the regional rally with 2-3% gains. The Nikkei gapped higher for the third time in six sessions, and the first two were followed by lower gaps. European stocks are higher, and the Dow Jones Stoxx 600 is trying to string the best two-day advance since the start of the year (~2%). US shares are firmer, and the S&P 500 may gap higher today above 2900 to bring last week's high ... (full story)