Chinese stocks bounced back, Fed in no hurry to adjust interest rates
After having plunged heavily for two days, Asian shares finally managed to bounce back on Thursday, as the Fed seems to be in no rush to taper the stimulus. Investors are betting that Beijing will not press too hard on the stock market as well. Rumors are that Chinese regulators have called banks overnight in an emergency to ease market fears, especially in the education sector. Previously, policymakers have banned private education providers in China from making profits. Some providers have responded swiftly by shifting from providing school curriculum to hobby classes such as robotics and music.
The Fed has also concluded its meeting yesterday. Chairman Jerome Powell stated that rate increases are not on the radar. DXY Index fell immediately after the announcement, currently trading at 92.157, down about 0.16% since opening in today’s session. On the other hand, CNY has recovered most of its drop on Tuesday due to the USD’s weakness.