Morning Briefing: Chinese rate cut boosts Asia, Europe lower

Morning Briefing: Chinese rate cut boosts Asia, Europe lower

Morning Briefing: Chinese rate cut boosts Asia, Europe lower Chinese rate cut boosts Asia, Europe lower
A surprise interest rate cut by China has seen Asian markets gain Monday. The People’s Bank of China made the cut of 25 basis points late Friday and also cut the reserve requirement ratio buy half of a percentage point.

The stimulus measures come amid faltering economic conditions in the country and have been welcomed by investors; although the sentiment did not spread to Hong Kong or Sydney where indexes closed lower.

European markets are generally lower so far Monday with mixed earnings adding caution to trading. London’s FTSE was hit by a fall in the stocks of telecoms firm Talk Talk which suffered a cyber attack and data breach last week.
New York and Toronto are set to open slightly lower.
 
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North America (previous session)
US Dow Jones 17,646.70 (+0.90 per cent) +8.16 per cent +5.01 per cent
TSX Composite 13,953.66 (+0.54 per cent) +4.30 per cent -4.06 per cent
 
Europe (at 6.10am ET)
UK FTSE 6,430.89 (-0.20 per cent) +5.27 per cent +0.66 per cent
German DAX 10,822.88 (+0.26 per cent) +11.71 per cent +20.42 per cent
 
Asia (at close)
China CSI 300 3,589.26 (+0.50 per cent) +11.06 per cent +50.13 per cent
Japan Nikkei 18,947.12 (+0.65 per cent) +5.97 per cent +23.91 per cent
 
Other Data (at 6.15am ET)
Oil (Brent) Oil (WTI) Gold Can. Dollar
48.24
(+0.52 per cent)
44.89
(+0.65 per cent)
1165.80
(+0.26 per cent)
U$0.7609
 
Aus. Dollar
U$0.7255
 
Yuan set to enter IMF currency benchmark
The International Monetary Fund is set to include China’s yuan in its benchmark currency basket CNBC reports. Unnamed sources are quoted as expecting the IMF board to receive a report recommending the yuan’s inclusion in November. The members will then vote on the move. China considers inclusion in the Special Drawing Rights basket as part of its strategy to become a global financial powerhouse with less dependence on the US dollar.
 
Meat industry reacts angrily to WHO report
The global meat industry has been dealt a blow by the World Health Organization which says that processed and red meat should be considered in the same category as cigarettes and asbestos. The WHO report released Monday will say that sausages, bacon and other processed meats are carcinogens, while red meat may be. CNN reports that the link to cancer has been called a “dramatic and alarmist over-reach” by the North American Meat Institute.