Eric J (Viking)
1st December 2011, 10:37
Well they keep proping it up somehow... I say let it crash and the new to begin...
It looks like the Chinese have helped temporarily to keep the stock market afloat with lowering the reserve requirements for their major banks by 50 basis points from December 5th onwards ...
This is only temporary folks...the market will crash regardless of what they throw at it...
quote...
Global central banks engage in massive intervention
Earlier in the session today's central bank intervention began with the People's Bank of China lowering the reserve requirements for their major banks by 50 basis points from December 5 which immediately sparked a 17 point move higher in the S&P 500 futures (see chart below).
At 13:00 GMT intervention in financial markets rose to a whole new level as the six major central banks the Federal Reserve, European Central Bank, Bank of Japan, Swiss National Bank and Bank of Canada lowered their USD swaps by 50 basis points, also from December 5. The move took everyone by surprise with major foreign exchange rates surging in relation to the USD; the intervention ignited a further 22 point jump higher in the S&P 500 futures - now trading 2.5 percent higher in pre-market. From a short-term trading and liquidity perspective the swap agreement lowers the funding pressure on European banks' USD funding which will relieve some of the stress in the banking system. However, long-term the global economy is still struggling with high debt and low growth which is essential in a solvency problem; and this intervention does not solvce that
http://www.tradingfloor.com/Blogs/equity-update/PublishingImages/2011/11%20November/11-30-2011_p1.PNG
http://www.tradingfloor.com/blogs/equity-update/stocks-explode-on-central-bank-intervention-and-us-job-data-1610275512
~~~~~~~~
viking
It looks like the Chinese have helped temporarily to keep the stock market afloat with lowering the reserve requirements for their major banks by 50 basis points from December 5th onwards ...
This is only temporary folks...the market will crash regardless of what they throw at it...
quote...
Global central banks engage in massive intervention
Earlier in the session today's central bank intervention began with the People's Bank of China lowering the reserve requirements for their major banks by 50 basis points from December 5 which immediately sparked a 17 point move higher in the S&P 500 futures (see chart below).
At 13:00 GMT intervention in financial markets rose to a whole new level as the six major central banks the Federal Reserve, European Central Bank, Bank of Japan, Swiss National Bank and Bank of Canada lowered their USD swaps by 50 basis points, also from December 5. The move took everyone by surprise with major foreign exchange rates surging in relation to the USD; the intervention ignited a further 22 point jump higher in the S&P 500 futures - now trading 2.5 percent higher in pre-market. From a short-term trading and liquidity perspective the swap agreement lowers the funding pressure on European banks' USD funding which will relieve some of the stress in the banking system. However, long-term the global economy is still struggling with high debt and low growth which is essential in a solvency problem; and this intervention does not solvce that
http://www.tradingfloor.com/Blogs/equity-update/PublishingImages/2011/11%20November/11-30-2011_p1.PNG
http://www.tradingfloor.com/blogs/equity-update/stocks-explode-on-central-bank-intervention-and-us-job-data-1610275512
~~~~~~~~
viking