The US and especially China have been declining economically (growth has been slowing) recently. China, known as the ‘miracle economy’ for its near 10% GDP growth each year, has slowed down to a fast but more comfortable 7.5%, with huge implications for the rest of the world. This slowdown in growth has affected Australia, and apparently stocks have gone down in the recent months in that country.
Well, the Central Bank of Australia is expected this week to fix some of that. It’s hoped to cut interest rates in the country, which will allow more businesses to get loans for cheaper, stimulating the growth that sagged when the sagging Chinese and US economy pulled it down. In expectation of the rate cut, Australian stocks jumped up again.
“The worst performers of the session were Kathmandu Holdings Ltd (ASX:KMD), which fell 27.54% or 0.515 points to trade at 1.355 at the close… Shares in Evolution Mining Ltd (ASX:EVN) rose to 52-week highs; gaining 11.11% or 0.100 to 1.000.“
http://www.investing.com/news/stock-market-news/australia-stocks-higher-at-close-of-trade-326078
http://www.reuters.com/article/2015/02/02/markets-australia-stocks-idUSL4N0VC1AP20150202
-Zheng
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