Market Brief, North America

A sense of optimism is powering financial markets forward this morning, with China promising more economic stimulus, a raft of Federal Reserve speakers likely to deliver relatively-dovish messages in the hours to come, and reports suggesting that Saudi Arabia is preparing to increase oil production. Treasuries are flat, equity futures are pointing higher ahead of the North American open, and the dollar is retreating against its major counterparts, with the euro, pound, and Canadian dollar all eking out half-percentage point gains relative to yesterday’s close. In a highly unusual September announcement, the Chinese politburo said it would mobilise “necessary fiscal...

Risk appetite is rebounding across the currency markets after Chinese authorities unveiled a raft of stimulus measures designed to boost growth and reinvigorate market sentiment. In a carefully-choreographed announcement, the People’s Bank of China cut its benchmark seven-day reverse repurchase rate and lowered the amount of cash that banks need to hold in reserve by 50 basis points, freeing up money for lending. It said it would also cut the interest rate payable on existing mortgages and lower down payments on purchases of second homes. And lending facilities equivalent to almost $70 billion dollars will be made available to brokers...