The stock market can rise before the central bank cuts interest rates, and the stock market may fall after the central bank cuts interest rates.
Because the impact of the central bank's interest rate cut on the stock market is unsustainable, the stock market will rise before the central bank cuts interest rates, because the interest rate cut is expected to increase investors' trading confidence and stimulate the stock price to rise. The reason why the stock price may fall after the central bank cuts interest rates is that interest rate cuts are generally a routine monetary policy operation, and the stock market will adapt to the implementation of this policy sooner or later. Long-term interest rate cuts indicate that the economic situation is not good, the economic support is poor, and the stock price may show a downward trend in the later period.
But in the short term, the central bank's interest rate cut is good for the stock market, mainly in the following aspects:
First of all, the central bank's interest rate cut has a direct impact on users' interest income. When the deposit interest rate is lowered, the interest income obtained by users in the later period is also reduced. Therefore, most users will choose to invest their own funds in other aspects, such as funds and stocks. Part of the capital flows into the stock market from banks, which is the internal driving force for the development of the stock market. Therefore, in the short term, the stock market will show an upward trend, and the increase in trading volume and liquidity is good for the stock market in the short term.
Mainly beneficial to stocks in the following sectors:
1, brokerage plate
The interest rate cut stimulates the expansion of investment channels, reduces the obstacles of capital flowing into the stock market, and some funds flow into the securities market, and the funds in its account increase, which stimulates the pull-up of the brokerage sector.
2. Banking
Interest rate reduction refers to lowering the deposit and loan interest rates. The reduction of loan interest rate has increased the business of bank loans, increased the interest income of banks and stimulated the rise of bank stock prices.
3. Real estate industry
For the real estate industry, reducing interest rates is equivalent to reducing interest rates, which is conducive to reducing the pressure on people to buy houses by stages, increasing the purchase of real estate, stimulating the development of the real estate industry and promoting its share price rise.
4. Consumer sector
Interest rate cuts make a large amount of funds flow into the society, stimulate the increase of consumption and stimulate the rise of stocks in the consumer sector.