Oil above $80 a barrel on China rate cut and possibility of OPEC cutting production.
www.cnbc.com
It was the first cut in the benchmark interest rate since 2008. Usually any cut in interest rates by a bigger central bank pushes up the price of gold owing to possible inflation fears. The move is an attempt to bolster the flagging Chinese economy and another beggar thy currency stroke.
It is also a response to the shockwaves the Bank of Japan recently sent through the market when it announced it was going full throttle on easy monetary policy.
Global markets seemingly are taking the hint by rallying as Dow futures are up 110 points, and S&P futures are up 12 points. In Europe, France's CAC is up 1.7%, Germany's DAX is up 1.8%, and Spain's IBEX is up 2.1%.
The U.S. market has been for days making nibbling new highs on nibbling volume, a worrisome sign for many. "Now…about this lethargic stock market. The recent market hasn’t merely been slow; it’s been one of the sleepiest markets in history. Every day, it seems, the indexes climb higher, but only microscopically. The S&P 500 just closed out a five-day run where it didn’t close higher or lower by more than 0.1%. That hasn’t happened in 50 years." http://www.crossingwallstreet.com
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