The Chinese government is doing a lot of things to boost its economy.
They lowered the interest rate, rebated more tax credits, postponed social security payments, and more loans to the companies. Today, they announced direct subsidies of $1.5 billion for farmers.
They are injecting every possible known economic steroid into their system and it seems they don’t care how those steroids would damage in near future. This is really making people scared.
China is the world’s No2 economy and what would happen if it collapsed with heavy steroids? It seems like they live in a “ NO TOMORROW “ world.
Beijing extended its’ work from home’ order with increasing COVID cases but at the same time, they are still preparing for Shanghai re-open by the end of May. This also makes people confused.
So, overall, the World’s No2 economy is going in strange, mystical directions and it looks like the world’s No1 economy is still the most trustful option for now. This kind of perception ruled today’s global equity markets.
US Stock market surged big today with this kind of perception. DJ Index was up 2.1%, S&P 500 Index was up 1.8% and NASDAQ was up 1.5% today. US and EU’s financial world is not perfect but better than China.
US Dollar Index fell again, downed another 1.1%, ending at 102.09. Instead, Gold and silver were up again.
Big tech firms mostly showed a nice rebound. Apple was up 3.8%, MS was up 2.9%, even, Tesla was up 1.1% but Amazon was down 0.5%.
The crude oil market was just sidelined today.
It is supposed to be another rally day with more possible Chinese energy demand but again, the Chinese screwed the momentum. Their strange steroid acts supply enough fears to the market.