The Federal Reserve is planning to launch a massive rollout of monetary easing in the financial markets to combat the economic damage brought by the pandemic spread of the new coronavirus. Investors’ fears seemed to have deepened by this move.
Market investors see the monetary easing move as an indicator of how tremendous the economic damage is right now faced by the U.S. economy. They also foresee a recession lurking in the markets while others presuppose the easing as an insufficient measure to halt the impact of the spreading coronavirus on the economic activities.
“This is an indication that the central bank is very scared about the environment we’re in. The policy response is so strong, it’s likely to spook investors,” Michael O’Rourke, chief market strategist at Jones Trading said.
Stock futures dropped to their daily limit on Sunday following Fed’s declaration of cutting interest rates to almost zero and bid for bond buying once more.
Goldman Sachs Group Inc lowered its U.S. growth prediction for the first two quarters of the year. Its new GDP growth forecast for the first quarter is set at 0% from the previous 0.7%. For the second quarter prediction, it expects the U.S. growth to contract by 5% from its original 0% forecast.
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 ...
June had seen Japan’s industrial output breaking its four-month slump. The recuperation could be attributed to a modest recovery seen in broader business and consumer activity after the world’s third-biggest economy suffered from ...
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 ...
On Wednesday, European stocks rose slightly after mixed earnings reports. However, the new wave of the coronavirus outbreak kept investors cautious while they also wait for the U.S. Federal Reserve’s announcement. The Stoxx Europe 600 ...