US stocks traded in the sideways manner on Monday as China rate cut lacked its usual shine, while investor remain cautious due to increased prospect of Fed rate hike.
At the time of writing, the Dow Jones Industrial Average (DJIA) was down 18 points or 0.10%. The S&P 500 index and the Nasdaq index were largely unchanged on the day.
The People’s Bank of China announced a 50 basis point cut in bank’s reserve ratio, but received a lukewarm response from the riskier assets across Europe. Moreover, back-to-back rate cuts in China and devaluation of Yuan are being read as signs of a sharp slowdown in the world’s second largest economy.
Furthermore, Asian markets closed lower today, with the Shanghai Composite Index closing down 2.9% near its lowest level in 14 months.
(Market News Provided by FXstreet)