It looks like it's going to be a good day in the U. S. stock market after another bad day of trading for Chinese investors.
U.S. stock prices are set to rebound, and the Chinese just announced more 'stimulus' programs cutting interest rates and injecting liquidity into their financial system.
China's central bank cuts interest rates has the breaking news:
"The People's Bank of China on Tuesday announced cuts to benchmark interest rates, lowering its lending and deposit rates by 0.25 percentage point. The rate cuts are effective on Wednesday and aimed at reducing corporate borrowing costs, the bank said, according to Dow Jones Newswires reports. China's central bank also reduced its reserve requirement ratio by 0.5 percentage point, with that requirement effective on Sept. 6. The reserve cuts are meant to ensure enough liquidity and stable credit growth, the bank said. The move comes after a session in which the Shanghai Composite plunged 7.6%, bringing two-day losses top more than 15%. U.S. stock futures, which were surging before the China news, added to those gains."
Although predicting anything these days about short term market moves is especially dangerous, we could see much, if not all, of yesterday's decline erased by the end of trading today.
That would be a stabilizing event but won't solve the world's financial problems.
Meanwhile, oil remains below $40 per barrel and China's stock market and economy may be in big trouble.
The storm isn't over for us, but the news today should be better --- much better --- than it has been the past few days.
In any event, as long term individual investors, we'll stay the course.
And we'll also stay tuned.
Have a great day.