Wool market rallies after Chinese stimulus package
The wool market has seen its most significant rise in several months. The AWEX EMI (Eastern Market Indicator) rose this week by 34c to close off at 1139c. This renewed market confidence is directly a result of the Chinese Government stimulus package. The Chinese government cut the amount of cash that banks must hold as reserves, freeing up cash for lending; lowered the minimum mortgage down-payment ratio to 15%, from current 25%, and the government guided commercial banks to reduce the interest rates on existing mortgages by 0.50 percentage points.
