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China's central bank cut benchmark interest rates by 25 basispoints on Thursday in the first such cut since 2008, bringing theone-year borrowing rate to 6.31 per cent and giving global marketsand key commodities an initial boost. The prices for oil, copper and gold all rose on the news, buoyed bythe signal that China was moving to stop a slowdown that has idledconstruction cranes in Beijing and sparked concerns around theworld that the commodity price super-cycle, more than a decade old,is petering out. But economists expect the optimism will be short-lived, because theChinese stimulus will take time to ripple through the Asian economyand then the rest of the world. It could also be a sign that Chinais more than just a little concerned about the state of itseconomy. What it tells me is that the Chinese officials are quite worriedabout where their economy is going, said Bart Melek, head ofcommodity strategy at TD Securities Inc. in Toronto. I would saythat this necessarily does not bode well for commodities over thenext few months. Ultimately monetary policy takes a while to havean impact. China has been the growth engine that powered commodity prices torecord highs over recent years as it underwent massive urbanizationin the years leading up to and following the 2008 Beijing Olympics.The main staging stadium for the event, the so-called Bird's NestStadium, took five years to build and used 42,000 tonnes of steel. But growth has slowed in the giant Asian economy, especially in thepast year as it matures and embarks on fewer giant infrastructureprojects. Commodity prices, while still high, are down from recordlevels, hurt too as the economic crisis in Europe put China sbiggest export destinations virtually out of commission. Melek and other economists will be keeping a close eye on more datadue out of China in coming days, on consumer prices and industrialproduction, which could be weaker than expected if Thursday s ratemove signals a deeper slowdown. The May data, not out yet, are still looking pretty bad, sowe ll still have some negative information coming in thatregard, said George Vasic, chief economist and strategist at UBSSecurities Canada Inc. We see this (rate cut) as a factor thatwill temporarily boost sentiment and obviously take out some of thetail risk on the downside, but at the end of the day itsincremental. We are high quality suppliers, our products such as 3 Piece Snooker Cue Manufacturer , Professional Air Hockey Tables for oversee buyer. To know more, please visits 1 Piece Snooker Cue.
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