Why Estee Lauder Stock Was Moving Higher Today
Shares of Estee Lauder (NYSE: EL), the cosmetics giant, were gaining today in response to news that China's central bank was lowering interest rates to stimulate the economy. China is a key market for Estee Lauder, and the business has been struggling, so it's not surprising to see the stock react positively to the news. As of 12:37 p.m. ET, shares were up 4.1%.
China stocks rose broadly today, especially consumer-facing ones, as the People's Bank of China cut mortgage rates and interest rates by 50 basis points in an effort to stimulate the economy. The move was designed to encourage more lending. The central bank also reduced the required reserve ratio for banks, freeing up an estimated $142 billion for loans.
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