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Good morning. Here’s what you need to know.
- Asian markets were mixed in overnight trading with the Shanghai Composite down 1.17 per cent. Europe is higher and U.S. futures are up after China’s surprise rate cut and Bank of England’s move.
- China announced a major surprise rate cut this morning. The People’s Bank of China cut the one-year lending rate by 31 basis points and the deposit rates by 25 basis points, but left the reserve requirement ratio unchanged. Now here’s why China’s deposit rate cuts are important >
- Bank of England raised the target of its asset purchase program by £50 billion to £375 billion. Meanwhile, it held its benchmark interest rate at 0.50 per cent.
- Today, Spain sold €3 billion of medium and long-term notes at the top end of its target after last week’s European Union summit. But Spanish 10-year borrowing costs are rising again. Now here are 14 reasons Spain is turning into a disaster >
- German factory orders were up 0.6 per cent in May from the previous month, pushed by euro area demand. Orders were however down 5.4 per cent from a year ago. Now here is UBS’ guide to the most troubled countries in the eurozone >
- Two huge beats on the job front this morning. Initial claims fell to 374K and private payrolls surged by 176,000 positions.
- The ECB cut interest rates by 25 basis points to 0.75 per cent. It also cut the deposit rate to zero. Mario Draghi is expected to hold a press conference at 8:30 a.m. ET.
- ISM manufacturing index for June will be released at 10 a.m. ET. Expectations are for the composite index level to decline to 53. Follow the release at Money Game >
- UK home prices climbed 1 per cent month-over-month in June, according to Halifax. Home prices were down 0.2 per cent from a year ago.
- The U.S. is filing a WTO complaint against China for imposing taxes on more than $3 billion worth of U.S. made autos.
- Bonus – Claire Danes and husband Hugh Dancy are expecting their first child.
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