Briefly, The last hour or so, we saw coordinated Central Bank actions, PBOC cuts RRR, very favorable ADP data, etc.
We just noticed high yield assets rallied sharply. Europe indices are up more than 3.7% UK FTSE is up 3% while US indices are up 2.9%.
Major Central Banks took coordinated actions to boost liquidity into the global financial systems. This was backed by the ECB, The US Federal Reserve, the BoE, the central Banks of Canada, Japan and Switzerland. This is a BIG surprise and BIG news.
There was speculation that China would cut their Reserve Ratio Requirement (RRR) in the 2nd half of 2012, while the majority of analyst expected the cut to be in Q2 2012 while a few expected it to be late Q1 2012. Never would I give a thought that China had announced a cut in the RRR by 50 basis ...
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