Central Bank Intervention Send Markets Soaring

Stock markets around the globe are surging with Dow Futures up 0.69 percent and S&P 500 Futures up 0.72 percent as of Friday morning.

The markets moved higher after China cut interest rates, lowering its 1-year deposit rate 25 basis points to 2.75 percent and its 1-year lending rate 4 basis points to 5.6 percent, according to Bloomberg.

Further fueling equities were  comments from ECB President Mario Draghi:  “We will do what we must to raise inflation and inflation expectations as fast as possible, as our price stability mandate requires of us. If, on its current trajectory, our policy is not effective enough to achieve this, or further risks to the inflation outlook materialize, we would step up the pressure and broaden even more the channels through which we intervene, by altering accordingly the size, pace and composition of our purchases.”

The news of central bank interventions sent Dow Futures up 127.00 points to 17,821 and S&P 500 Futures up 15.00 points to 2067.0 in Friday’s pre-market.