SaxoTV

Hardy: Market churns as China chops rates

644 views
October 23, 2015 bonds, central banks, china, china economy, china rate, commodities, currencies, currency, currency trading, emerging markets, equities, essential trades, essential trades q3, fixed income, forex, forex market, forex markets, forex trading, fx, fx market, fx markets, fx strategy, fx trade, fx trading, hardy, hardy saxo bank, interest rates, john, john hardy, john hardy forex, john hardy saxo bank, john j hardy, johnhardy, johnjhardy, macro, market reaction, monetary, monetary policy, monetarypolicy, people's bank of china, peoples bank of china, rate cut, renminbi, saxo, saxo bank, saxo bank commodities, saxo bank currencies, saxo bank equities, saxo bank fixed income, saxo bank forex, saxo bank group, saxo bank john hardy, saxo bank saxo tv, saxo bank trading, saxo bank trading floor, saxo bank tradingfloor.com, saxo bank tv, saxo capital markets, saxo traders, saxo trading, saxo tv, saxo tv saxo bank, saxo tv trades, saxo tv trading, saxo tv trading floor, saxo tv tradingfloor, saxo tv tradingfloor.com, saxobank, saxobank.com, saxotrader, saxotv, trade, trade idea, trade view, trader, traders, trading, trading commodities, trading currencies, trading equities, trading fixed income, trading floor, trading forex, trading fx, tradingfloor, tradingfloor saxo bank, tradingfloor saxo tv, tradingfloor.com, tradingfloor.com insights, tradingfloor.com saxo tv, tradingfloorcom, yuan
China’s central bank cut its benchmark lending rate and reserve requirements for banks on Friday, boosting the appetite for risk in the market, says Saxo Bank’s John Hardy.

Coming just a day after the ECB’s Mario Draghi moved markets with hints of further QE, Hardy looks at the market reaction to the rate cuts which are aimed at propping up a slowing Chinese economy.

According to the People’s Bank of China, the one-year lending rate will drop to 4.35 percent from 4.6 percent effective Saturday. The one-year deposit rate will fall to 1.5 percent from 1.75 percent.

Hardy says the move supports Saxo Bank’s bullish call on emerging markets and explains how he is trading the event.