Stimulus Archives - The Industry Spread

Equities Positive on Stimulus Expectations from Major Central Banks

September 10, 2019

Global stock market is seeing positive price action today as investors expect fresh stimulus from major global central banks to boost economic activity. Following Chinese central bank’s announcement last Friday on decreasing minimum cash reserve requirement for banks to boost loan and liquidity offerings as a measure to boost slowing economic growth, traders now expect other major central banks – ECB & US Federal Reserve to mirror similar sentiments. Comments made by Fed Chair Jerome Powell during the weekend stating that central bank would act as appropriate to sustain economic expansion also helped shore up investor expectations of fresh stimulus from US central bank.