Most markets plunge as China's rate cut fails to ease economy worries

Most markets plunge as China’s rate cut fails to ease economy worries

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Wall Street extended slower gains while the end of the week focused on a symposium of top central bankers and business leaders in Jackson Hole, Wyoming, with dealers expecting some guidance on rates.

“Recent comments suggest the central banker will retain flexibility to hike rates further, while clearly refraining from cutting rates too soon,” said Redmond Wong at Saxo.

While the Fed and others consider more hikes, the People’s Bank of China announced another rate cut on Monday in a bid to prop up the faltering economy.

The decision to reduce the one-year loan prime rate, which serves as a benchmark for corporate loans, comes after a cut in June left it at a historic low.

However, it hit the five-year LPR, which is used to price mortgages, and the cut was less than forecasters had predicted.

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