As the uncertainty about Greek political situation and probability of second time polls has darkened the outlook of stock markets. Meanwhile US Economic growth left steam as stimulus faded. Hiring was subdued after first quarter jump and earning season is already over. Markets will now start focusing on Macro Economic fundamentals and start reacting according to it.
In Asia, Markets were under performers compared to US since April, although Shanghai Index has started outperforming since few weeks as analysts betting on economy rebound.
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| Bank of China |
If we look at the policy action that was announced today that the People's Bank of China cut the amount of cash that banks must hold as reserves on Saturday, freeing an estimated 400 billion yuan ($63.5 billion) for lending to add to the roughly 800 billion injected in two previous 50 bps cuts since the government tilted its policy stance towards growth in October.
The move came after data on Friday showed the economy weakening, not recovering, from its slowest quarter of growth in three years. Industrial production growth slowed sharply in April and fixed asset investment — a key growth driver — hit its lowest level in nearly a decade, confounding economists expecting signs of a rebound in Q2 data.
Now question is the move should be taken as positive or may be more negative to the outlook of Chinese economic growth? If we see that more liquidity to flow in as a positive indicator but will it be sufficient to lift the industrial production and growth or it is still conservative step than what actually needed to boost economy as Inflation fear dampening the developing economies to free up capital.
hemenparekh 
First-Mike 
Stephen 
Sadie Heldberg 
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