NZD staged a brief rally to above 0.58 at the European open
News and views China cut its benchmark rates by 27bp and reserve requirements by 50bp, injecting a positive tone to metal markets. Gold and copper both gained around 1%. Risk-aversion, as measured by the VIX index, fell 2% to 44 (under 40 is neutral), although we note that the VIX has not correlated well with equity appetite in recent weeks. Pessimism reigned in most equity markets, the S&P500 falling 2.6% on disappointing earnings announcements, and European indices down 1-2%. Brent crude