Spreadex Market Update

Unscheduled rate announcement



The unscheduled rate announcement by the Chinese central bank has been long awaited and has satisfied the growing expectations of a rate cut by a major economy.

This could give a much needed boost to trade in Europe and the rest of Asia as China’s domestic demand increases and as Chinese companies can now finance global operations at cheaper costs.

It is also worth being mindful that sometimes such interest rate moves are coordinated with other central banks therefore there could be further surprises to the upside.

Since the rate cut we have seen a turnaround in our spread betting client’s risk asset positions, attributed to the short squeeze and the subsequent expectation that the US markets could open strongly off the back of the news.

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