Not only did China cut rates by 50bps last night but they also announced a $114b stimulus program to help buoy both the property markets and stocks. The details of the stock program aren’t exactly clear but we do understand that making money in Chinese stocks has been nonexistent for about a decade.
As a result, China and Hong Kong was up more than 4%, most since 2020.
Bottom line analysis: any stimulus out of China is bullish for materials and oil. We are in a monetary expansion phase and should expect more of this from many countries, which ultimately is bullish for stocks.
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