LONDON (Reuters) – World stock markets regained a measure of calm on Monday as hopes for a raft of international interest rate cuts to soften the financial blow of the coronavirus steadied nerves and drove U.S. Treasury yields near to 1%.
A visitor wearing protective face mask, following an outbreak of the coronavirus, strolls past in front of a stock quotation board outside a brokerage in Tokyo, Japan March 2,2020 REUTERS/Issei Kato
After recently’s worst plunge for equities markets since the depths of the 2008 monetary crisis, it was always going to be a wild trip.
Asia had initially dived again after China reported a record slump in factory activity however the region rallied to finish greater as bond yields sunk and talk of OPEC supply cuts sent oil costs roaring up as much 3.5%. [O/R]
Europe then made a blistering start. The FTSEurofirst 300 FTEU3 leapt over 2%, putting it on course for its finest day in well over a year, just to suffer a major mid-morning wobble that left it simply 0.2%much better off. [.EU]
Wall Street S&P 500 and Dow futures ESc1 1YMc1 went on a similarly irregular journey; initially diving, then springing, then stumbling and eventually stalling near-flat. [.N]
” The market is returning because there is perception that there will be a collaborated G7 policy reaction,” said BlueBay Possession Management’s head of credit technique David Riley.
” We have Fed and ECB meetings coming up in the next couple of weeks. The Fed is the crucial one and it will be very hard for them to hold back (from rate cuts) if we are in a scenario where the econ