Asian shares recovered and bond yields climbed from all-time lows on Tuesday as potential organized stimulus from central banks and governments globally calmed markets.
The 10-year US Treasury yields rose to 0.68% and oil prices hiked over 6%, raising notions that the market steadied, even for a while.
Senior FX strategist Rodrigo Catril at National Australia Bank said that an organized fiscal and monetary policy is becoming more probable, especially as Donald Trump said that the US will implement major measures to underpin the economy.
Investors showed appetite for E-Mini futures for the S&P 500, which went up 2.4% after an earlier slip, while EUROSTOXX 50 futures climbed 1.7%.
MSCI’s broadest index of Asia-Pacific shares outside Japan rose 0.4%; Japan’s Nikkei increased 0.4%, but recovered from earlier lows; and Australia grew 1.9%, as investors turn to bargains in beaten-down stocks.
Wall Street was on the verge of a descending market, with major indices declining 20% from all-time peaks.
The S&P 500 dropped 7.60%, the Dow slid 7.79%, and the Nasdaq fell 7.29%.
Energy stocks suffered deepest falls as markets prepared against an oil price war between Russia and Saudi Arabia.
On Tuesday, Brent crude futures increased $2.22, at $36.58 per barrel, while US crude recovered $1.66, at $32.79.
Despite the market’s easing, updates on the coronavirus outbreak were gloomy, with the most recent news of Italy’s lockdown. The Italian government had canceled public events and had ordered everyone not to travel unless for emergencies or for work.
Economists at JPMorgan said that a 1H20 global growth contraction and global disinflationary wave is expected. They added that the Fed will most probably cut to zero at its meeting on March 18.
The Bank of England will announce next week how quickly it expects the economy to recover from the coronavirus pandemic, but it is unlikely to add to the 100 billion pounds of the fiscal package it released in June. Britain’s economy ...
Asian shares recorded a turbulent session on Friday as weak economic data from the United States and surging coronavirus infections worldwide dragged market confidence. The decline followed despite upbeat U.S. tech gains and signs of rebound ...
European shares traded lower earlier on Thursday after underwhelming earnings reports dampened a U.S. Fed vow to continue rolling out stimulus plans in a bid to soften the economic blow of the COVID-19 pandemic. The pan-European STOXX lost ...
The dollar was briefly lifted on Thursday after the U.S. Federal Reserve offered no concrete clues about its next course of action, while investors hoped for an easy policy as the coronavirus resurgence stalled economic recovery. The dollar ...
Asian stocks advanced on the prospect of ultra-easy monetary policy as the U.S. Federal Reserve kept interest rates near zero. Fed deemed it necessary to salvage the ailing economy, dragging the dollar down to a two-year low. The target range ...