Recession call

European stks are up sharply 4-5%, surprise surprise! Is this another opportunity for some of us to trim our holdings?

Good chance for stocks to rally tonight & tmrw after China cut the amount of cash that banks must set aside as reserves for the first time since 2008 as Europe’s debt crisis dims the outlook for exports and growth. Reserve ratios will decline by 50 basis points effective Dec. 5, the People’s Bank of China said in a statement on its website today. Before the announcement, the level was a record 21.5 percent for the biggest lenders, based on previous PBOC statements. A government clampdown on property speculation has added to the risk of a deeper slowdown in the economy that contributes the most to global growth. Exports rose by the least in almost two years in October and inflation eased to 5.5 percent, the smallest gain in five months. “The move will help ease liquidity after previous tightening measures cooled credit growth too much and may have added to the risks of a hard landing for China,” Shen Jianguang, a Hong Kong-based economist at Mizuho Securities Asia Ltd., said before today’s release.

Dow up 400+ points... U.S. stocks rallied Wednesday, with the Dow industrials chalking up their best day in more than three years, as the Federal Reserve and five other central banks moved to help banks hit by Europe’s debt crisis.

US Federal Reserve cut its interest rate on loans to European Central bank by half means Europe will be flooded with cheap USD. Means everything will become more expensive. Means cost of production will continue to rise. Means margin squeeze on corporate profits... Arggggggghhhh money.cnn.com/2011/11/30/news/economy/fe..._liquidity/index.htm

U.S. stock market futures moved sharply higher on Friday, in step with sharp gains for European stock markets.

Futures for the Dow Jones Industrial Average  rose 103 points, or 0.9%, to 12,107.

Markets are hoping U.S. nonfarm payroll data due later will reassure over the U.S. economy.

Meanwhile, French President Nicolas Sarkozy said late Thursday that Germany and France want an overhaul of the European Union. German Chancellor Angela Merkel is making a speech to parliament on Friday morning in Europe.