After a prolonged period of volatility in risk assets across the globe, action on the part of the Chinese central bank spurred a global reversal, fueling positive momentum in global equity markets. The move by the PBOC to reduce banks' reserve ratio requirements from 17.50% to 17.00% is an attempt to tackle troublesome liquidity conditions amid the accelerated pace of capital outflows and rapidly declining foreign currency reserves. The addition of daily liquidity operations further helped to ease negative sentiment with investors calmed by the more accommodative activities.
China Adds Open Market Purchases to Easing Package
Weekly Report - 06/03/2016