markets are showing mixed sentiment on Wednesday following yesterday’s
off-schedule interest rate cut by the Federal Reserve, as the surprise move
failed to reassure investors.
shares ended on a mixed note, as equities on Wall Street finished in red
overnight despite the Fed’s 50-basis point, which is the first unscheduled
action since the financial crisis a decade ago.
remained the most attractive safe haven, where the yield on the U.S. 10-year
treasury dropped to a new record low of 0.935 percent on Tuesday, while it is
currently hovering near it at 0.957 percent.
the currency market, the Swiss franc is currently trading higher versus major
currencies amid safety demand after the rapid spread of the coronavirus in the
United States and India.
death toll from Covid-19 now stands at 3,190, which will probably prompt more
global action to prevent the spread of the disease and mitigate its negative
night, the World Bank announced a $12 billion package for countries suffering
to deal with the health and economic damages of the virus.
in the day, the Bank of Canada is widely expected follow the suit of the Fed by
cutting interest rates to 1.25 percent from the current 1.75 percent.
Chair Jerome Powell had highlighted the limited impact of the monetary policy
on containing the disease, raising concerns about the potential economic
damages from the coronavirus.
services Caixin PMI tumbled into the contraction area as the reading nearly
halved to 26.5 in February, down from 51.8 in January, coming far below
analysts’ projections of 48.0.
The sentiment will
probably remain mixed as some investors try to gain confidence from the global
coordination to contain the virus, while others would remain stick to safety.