The Markets Just Got A Double-Dose Of Central Bank 'Oomph'

The world's central banks aren't done using their words and actions to stimulate the economy.

Friday came with two big central bank gestures that rocked the global markets. The first big move came from European Central Bank President Mario Draghi, who spoke to a banking conference in Frankfurt at around 3:30 a,m. ET.

"It is essential to bring back inflation to target and without delay," Draghi said. "We have to be very watchful that low inflation does not start percolating through the economy in ways that further worsen the economic situation."

The euro immediately tanked on Draghi's dovish words (see chart above).

The second big move came from the People's Bank of China, which announced interest rate cuts at around 5:30 a.m. ET.

The one-year deposit rate just got cut 0.25 points to 2.75%, and the refinancing rate was slashed 0.40 points to 3.60%.

As you can see to right, the Aussie dollar - a proxy for the Chinese economy - made a huge move.

Both of today's actions come in the wake of accumulating signs of deterioration in the European economy and the deceleration in the Chinese economy.

"China's once-famous growth rates have dropped, and the government is now pursuing a 7.5% annual rise in GDP. Some economists think even that rate is unrealistic," Business Insider's Mike Bird noted.

Societe Generale analysts note that this may not be the end of it either.

"[T]he onus will be on central bankers to provide some oomph for markets going into the weekend," they wrote. "The BoE's MPC member Miles, Federal Reserve board member Tarullo and San Francisco Fed President will all deliver speeches today while ECB Vice President Constancio will deliver a speech on monetary policy on Saturday."

For now, markets are ripping higher. Dow futures are up 110 points and S&P futures are up 12 points.