Photo: Feng Li/Getty Images
ORIGINAL POST, SEE UPDATE BELOW: A trader in Asia suggests that the market rally is keying off this headline (via Bloomberg):*CHINA MAY ANNOUNCE STIMULUS AFTER WEN COMMENT: SECURITIES
What’s going on, specifically?
According to WSJ, Chinese Premier Wen Jiabao spent the weekend talking about growth to various state media.
The fact that he’s talking about growth is seen as a major sign that inflation is not the fear and that it’s time to pump the gas pedal.
Premier Wen Jiabao called for greater efforts to support growth, through more monetary fine-tuning and fiscal incentives, amid signs of the economy further cooling.
While economic growth is still on track, development will face more complex domestic and global hurdles, Wen said during a weekend inspection tour to Wuhan, capital of Central China’s Hubei province.
“The relationship between maintaining growth, adjusting economic structures and managing inflation, must be properly handled,” Wen said in comments reported by Xinhua News Agency. “We should continue to implement a proactive fiscal policy and a prudent monetary policy while giving more priority to maintaining growth.”
Not surprisingly, the Aussie dollar (via FinViz) is having a great start to the night.
UPDATE: There are actually a few headlines that seem to be breathing life into this market.
There’s some sense, apparently, that the far left SYRIZA party in Greece may be moderating its tough talk:
GREECE’S LEFTIST TSIPRAS: “WE WANT EUROPE’S SUPPORT AND FUNDING” BUT TERMS MUST ALLOW GROWTH
TSIPRAS SAYS IF ELECTED WOULD SEEK TALKS WITH EUROPEAN LEADERS ON NEW TERMS TO KEEP GREECE IN EURO
And then there’s this Reuters story about Mario Monti proposing to the G8 a bank gaurantee scheme, that evidently saw some support from the US/ECB.