Markets Love Central-Bank Gifts

Financial markets reacted positively to news that China's central bank would cut interest rates, and with good reason -- at least for the time being.

Central bankers know how to please bears.

Photographer: Jean-Francois Monier/AFP/Getty Images

Equity markets around the world are responding enthusiastically today to news of further central-bank stimulus, and understandably so. Central banks have been the markets’ best friends. Betting on their continued support has been a very profitable strategy for investors in recent years. 

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