Photo: Google Finance
It’s been a crazy morning of news, and markets have been whipsawing.Earlier this morning, markets spiked with Dow futures jumping by around 40 points on two big monetary policy moves at 7:00 AM EST (see below).
Just an hour later, all of those gains have evaporated, with Dow futures turning negative before the European Central Bank announced its interest rate cuts.
Then we got bullish U.S. jobs numbers from Challenger, ADP, and the Bureau of labour Statistics. Futures spiked, with Dow futures up 25 points.
And now Dow futures are down a solid 50 points.
Central Banks Act
The Bank of England announced a 50 billion pound expansion to its asset purchase program. This was largely in line with economists’ consensus.
However, the major catalyst was probably China’s unexpected cut in interest rates. Specifically, it cut its benchmark interest rate and its one-year lending rate.
Both moves were implemented with the aim of stimulating the respective slowing economies.