US & Europe believers are eagerly awaiting another fix …..
But the disconnects – in performance & cure all optimism in the power of the modern central bank- with China are opening very wide.
FT: ‘Hopes of stimulus steps supports stocks’
” …… investors are being presented, perhaps, with evidence from China of the limits to monetary policy’s sentiment-reviving qualities.
Speculation abounds that Beijing is preparing to again cut the reserve requirement ratios for the country’s banks in an effort to encourage lending as economic growth slows.
Any such move would follow last month’s first cut in borrowing rates since 2008, an easing of policy that many would have expected to encourage a stock market revival.
Yet on Thursday, the Shanghai Composite is down 1 per cent and sitting only about 0.5 per cent above its lowest closing level since the start of January.
Steelmakers and coal miners led declines in Shanghai amid weakening demand and falling prices. Indicative of the concerns about slowing growth in the world’s second-largest economy, shares in Sany Heavy Industry extended losses for a fourth day, as the company, China’s biggest machinery maker by sales, cut jobs.”