China cut its interest rate from 6% to 5.4% given recent weak industrial and real estate reports. This sent a sharp bullish message through markets. While the ECB did nothing but talk, Mario Draghi once again stated he was ready to do everything it would take reflate the eurozone’s economy. (I guess over there talk’s not cheap since that’s all Draghi seems to do.) This cheered investors generally but the euro fell victim and U.S. holders didn’t get the benefit of sharp gains there. But, for the first time since fall, emerging markets, led by China’s rate cut rose substantially.
Given easy money talk around the globe, this sent many commodity sectors, include precious metals, higher. The dollar rallied sharply once again. U.S. markets rallied sharply early