The China interest rate cuts and modifications to reserve requirements are an attempt to bolster a slowing economy.

The People’s Bank of China said the interest-rate cuts were aimed at reducing borrowing costs for Chinese companies, while the cut to bank-reserve requirements were intended to maintain “ample liquidity” in China’s financial system. We took a deeper look at how this impacted the SP500, $ES_F, earlier in the day.

Moneylife on Twitter

China lowers interest rates …

This is the fifth time they have cut rates in recent history according to Bloomberg TV.

Bloomberg TV on Twitter

China cuts interest rates for a fifth time hoping to stop rout

One of the results in US markets is that Treasury yields climbed and we can see $ZB_F futures dipping below 160.

CNBC International on Twitter

US Treasury yields climb past 2% as markets stage relied rally, China cuts interest rates

According to CNBC we are already thinking about the impact on the FOMC interest rate decision in September:

The market headwinds seen this week and last week have led investors to reassess their expectations for the timings of a U.S. Federal Reserve interest rate rise. A hike in September—the first in nine years—is now seen as less likely.

As of this posting, the $ES_F held up well overnight gaining approximately 30 handles into the 1930’s. Make sure to check out the Traderfy Trend each morning for a preview of the futures market trends.