Once again, the rise in government bond yields is acting as the catalyst for the sell off in stocks.
The virus pandemic continues to wreak havoc on the global economy and financial markets, with investors monitoring the spread of Covid-19 and hoping for more stimulus measures from central banks and governments worldwide.
With global stocks market collapsing and entire economies going into lockdown, many are wondering how much worse this crisis can get and how long it will last.
Markets have recently become accustomed to sudden decisions and meetings from some central banks amid a worldwide spread of Covid-19, reminiscent us of the decisions made by banks in the wake of the 2008/09 financial crisis.
The fourth week of heightened volatility will see financial markets continue to focus on the coronavirus spread across Europe and the US. Investors will continue to monitor the spread and impact of Covid-19 on the global economy amid hopes of a coordinated stimulus package from world policymakers.
World governments are suffering from a great dilemma, on one hand is the COVID-19 Spread. Global official bodies are taking extensive containment measures to limit the spread. It was confirmed that the number of infections has exceeded 135 thousand cases
The British pound at the start of the European session dipped against the US dollar below the levels of $1.29 after the Bank of England surprised the markets by cutting the borrowing costs by 50 basis points in order to counter the coronavirus crisis.
Following the Fed’s surprise 50 bps cut to its fed funds rate target on March 3, another 50-bps cut is anticipated at its next meeting on March 18. The Federal Reserve's emergency rate cut had a limited positive effect and only opened markets' thirst for more moves.
It’s been a truly chaotic fortnight in financial markets, with the number coronavirus cases and fatalities accelerating outside of China, prompting authorities around the world to raise their game.
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