Exxon Mobil Corp XOM shares are trading higher by 1.12% to $107.61 during Tuesday's session. Shares of energy companies are trading higher after China's central bank cut its seven-day reverse repurchase rate. Additionally, May CPI data showed slowing U.S. inflation, which could be further easing macro concerns.
What Happened?
According to a Reuters report, the People's Bank of China (PBOC) has reduced a key short-term lending rate for the first time in 10 months. The move aims to bolster market confidence and support the sluggish post-pandemic rebound in the second-largest global economy.
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This adjustment comes in response to weakening demand and investor sentiment, further strengthening the argument for immediate policy measures to sustain economic growth.
The decision to lower the lending rate may indicate a potential relaxation of longer-term rates in the coming week and beyond, per Reuters.
According to data from Benzinga Pro, XOM has a 52-week high of $119.92 and a 52-week low of $80.69.
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