China’s central bank on Monday cut the reserve-ratio requirement for banks by 0.5 percentage points, according to media reports. The ratio refers to the amount of cash China’s lenders must keep as reserves. Global markets came under pressure on Monday after the central bank guided the yuan lower for a fifth straight session. Investors are concerned that a weaker yuan is a major tool in China’s arsenal to help combat an economic slowdown, even after officials gathered at the Group of 20 meeting over the weekend tried to reassure markets to the contrary. The announcement to ease the reserve-ratio requirement came after the close of markets in China, which ended with a 2.9% loss for the Shanghai Composite Index . U.S. stock futures pointed to opening losses.
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From:: Stock Market News