China’s Central Bank surprised the world today as lowering the 5-year load prime rate by 0.25%. They lowered the rate to 3.95% and it was much bigger than market expected. Despite of this big decision, Chinese stock market was not responding well today. Hong Kong’s Hang Seung Index was up only 0.2%. But Chinese Yuan rate have touched the lowest in three months, ended at 7.19 per US dollar.
Today, Chinese government have used one of the magic cards they have at last. If the economic status doesn’t get better soon after this, China might face even bigger problems than just recessions. That’s why Chinese government hesitate to use the card “LOWERING THE RATE”
Let’s see how it turns out.
US stock market was downed today.
Today was just a kind of day, remembering that FED wouldn’t lower the rate anytime soon. Lots of disappointing sellers in the market with some profits in their hands of course. NVIDIA showed the biggest declines in this year, downed by 4.3% today. WALMART hit the highest stock price ever today as their annual dividend raised to 9%.
