Asian stocks started a brand new trading week on the back foot, following declines offshore and as China’s move to lower the reserve requirement ratio for all banks by 100 basis points on Sunday failed to boost sentiment. This marked the second cut in two months as the world’s second-biggest economy attempted to combat slowing growth.
“Everyone is going to look at this after awhile and say ‘Hold on, why are they reacting so strongly or overreacting?’ People are going to sense desperation here,” Paul Gambles, co-founder of MBMG Group, told CNBC’s “The Rundown.”
Major U.S. indices closed sharply lower at the end of last week as investors shunned risk amid new trading regulations in China, renewed worries about Greece’s cash crunch, while looking ahead to a heavy week of earnings.
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