American, European Stocks Rebound After China Cuts Interest Rates Again

The Shanghai Stock Exchange Composite finished the day down, but apparently the rest of the world likes the Chinese plan to cut interest rates to spur their country's lackluster 7% growth. (! -- well, they're used to even higher rates, and some people think that number is inflated.)

Chinee stocks, however, kept falling.

Global markets rallied higher after the Chinese central bank announced plans to cut its one-year lending rate to 4.6 percent, a move the People's Bank of China said would provide long-term liquidity and help support the economy. The move came after China’s benchmark Shanghai composite index slid further Tuesday, losing 7.6 percent to close below the psychological 3,000 mark.

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The CBOE Volatility Index (VIX), widely considered the best gauge of fear in the market, traded near 31 Tuesday after as much as 90 percent on Monday, its highest level since 2009. The New York Stock Exchange invoked Rule 48 for the second day in a row Tuesday to pre-empt panic selling, Dow Jones reported.

So I'm sure everything's okay now.

posted by Ace at 11:36 AM

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