Coronavirus: Stocks fall after global central bank action


And what a move from the fed to wakeup to Raja emergency shock and all you could call it but the market reaction shows some disappointment a cot to almost zero on interest rates and seven hundred billion dollars of asset purchases yeah and that was seeing other central bank action as well we've had the bank of Japan making a move that certainly didn't impress the markets we know the bank of Korea's doing something we'll send it to the reserve bank of India is having a press conference seen as well so a lot of action out there but certainly looking at the way it's been going this morning in Asia now because of your nature of people are not impressed no absolutely no I mean what you see from the central banks you mentioned a few that are of course the B. O. J. with a commitment to ETF purchases but stopping short of a rate cut we got a rate cut from the audience adds the all B. H. a potentially pledging more measures as well you start to wonder whether this does actually look like some global coordinated response from central banks but the question is is it too little too late and what is the move from the fed actually achieve of course has already achieved anything to prop up risk assets overnight but does it leave more time and more room for fiscal space what does it actually accelerated the urgency full fiscal measures to take place and of course the big agenda right in today is the G. seven cool between global leaders articles what might well be in their minds that horrendous data out of China I mean a real holiday this data that we've got from January February less than expected written record way that will build Burton I think people thinking about how this crisis is going to work itself out absolutely and last week of course we saw global equity markets tumble into bed market territory the stock six hundred in Europe gain some one percent on Friday right now we open it down at two point six percent so not quite as bad as some of the futures were indicating looking across regional equity benchmarks Roger using the footsie one hundred down two point two percent the ibex unfit see made both in the red just waiting to get an opening price through from the dax and CAC forty of course the swings in the U. S. market at the end of last week was starting Wednesday since nineteen eighty seven on Thursday best day since two thousand and eight on Friday futures are traded limit down and taking a look at where we are now one U. S. futures you're seeing S. and P. Dow and nasdaq futures all in lower by at least four and a half percent and then we get to the bull market the ten year treasury yields tumbling more than thirty basis points at one point in the Asian session went down twenty now to a seventy six handle with C. yields tumble across the U. S. because of the market seems to be debating for more from the fed or elsewhere at the two year yield at thirty two basis points down seventy was seen curve flattening so that tells you something as well about the market's reaction to Jerome Powell whatever it takes the ten year bond yield down three basis points negative fifty seven ten you guilty sixty basis points in FX markets are we see the yen jumped up more than one point three percent against the dollar at the moment so don't again I did fluctuate a little bit on the BOJ's decision but ultimately you'll see this as a reaction to the fed daily and that one percent what a six fifty we've also seen the Ozzy I use even dollars come under pressure from action and signals from those two central banks D. X. Y. Morgan Stanley says that you should be selling the dollar against the euro the Aussie and the loonie because a risk assets and the self that I would actually finding a bottom D. X. Y. at ninety seven Morgan Stanley sees ninety five on further dollar weakness I'm just taking a look at commodity markets you see oil WTI and Brent extend losses off to the worst week since two thousand eight Brent down four point four percent at thirty two thirty four dollars a barrel Raja yeah what a thing for you to return from holiday into your relaxation I'm afraid might dissipate quite

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