Kicking off today’s session, Chinese equities are continuing to rally on hopes for further monetary easing from the PBoC, as new data releases indicate that the economy continues to show signs of weakness. This rally continues the trend of ‘bad news is good news’ as Chinese equities, and the Shanghai index in particular, continue to post massive gains while the overall economic situation in China rapidly deteriorates.
Outside of China, the Reserve Bank of India cut rates for the third time this year citing the effect lower energy prices are having on inflation in the subcontinent. This largely unexpected policy shift has the rupee trading half a percent lower versus the dollar while equities in Mumbai are down roughly 2% Australia also had a rate decision today with the Reserve Bank of Australia opting to keep rates the same rather than enact a rate cut as many market participants had expected, this divergence from expectations has propelled the Aussie dollar nearly a cent higher versus the greenback.
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