China’s Shanghai Composite tumbled 3.3% due to growing concerns the country’s growth with slow, and the Hang Seng fell 1.5% to 17989. China’s central bank cut reserve requirements for the first time in nearly 3 years in an effort to keep the economy on track. In Japan, the Nikkei slipped .5% to 8435, while Olympus shares recovered from a sharp 10% loss at the open after the company affirmed it would release its December earnings report on time. Korea’s Kospi declined .5%, but Australia’s ASX managed to buck the trend, closing up .3%.
A coordinated move by global central banks to increase liquidity sent Western markets sharply higher. The DAX spiked 5%, the CAC40 soared 4.2% and the FTSE climbed 3.2%. Miners jumped 6% amid hopes the easing efforts will boost demand for raw materials.
Dow Soars Nearly 500 Points
Netflix shares slumped 4.5% after the company was downgraded to sell from neutral by Wedbush Securities.
Currencies
The Australian Dollar surged 2.4% to 1.0284 as the recent rally accelerated. The Canadian Dollar jumped 1% to 1.0198, and the Euro gained .8% to 1.3436. The Pound rose .5% to 1.5695, while the Yen declined .5% to 77.55.
Economic Outlook
Wednesday’s reports were exceedingly upbeat. Data from the ADP employment report blew past forecasts, with the economy adding 206K jobs last month, up from 130K in the previous report. Chicago PMI rose to 62.6 from 58.4, well above estimates, and the Challenger job-cut report showed planned layoffs declined by 12.8%.
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Daily Analysis – Central Banks Unite to Boost Liquidity, Western Markets Soar
Published 12/07/2011, 06:18 AM
Updated 05/14/2017, 06:45 AM
Daily Analysis – Central Banks Unite to Boost Liquidity, Western Markets Soar
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