Investing.com - Financial Markets Worldwide
Black Friday Sale! Save huge on InvestingProGet up to 60% off

UPDATE 1-European stocks, bonds steady after rising on emergency Fed cut

Published 03/03/2020, 11:53 PM
Updated 03/03/2020, 11:56 PM
UPDATE 1-European stocks, bonds steady after rising on emergency Fed cut
DE10YT=RR
-
IT10YT=RR
-
STOXX
-

(Adds fresh comments, updates prices)
LONDON, March 3 (Reuters) - European stocks and bonds
steadied after a brief spike in reaction to the U.S. Federal
Reserve's emergency 50 basis point rate cut on Tuesday, which
was aimed at countering the economic fallout from the
fast-spreading coronavirus.
The first inter-meeting rate cut since 2008, to a target
range of 1.00% to 1.25%, came a few hours after global
policymakers pledged to address the wider impact of the
coronavirus outbreak.
"The fundamentals of the U.S. economy remain strong.
However, the coronavirus poses evolving risks to economic
activity," the Fed said. The pan-European STOXX 600 .STOXX index jumped as much as
3.2% to session highs before paring gains to stand 2.1% higher
by 1518 GMT.
"We were in the camp that monetary policy can't solve the
uncertainty of this crisis," said Neil Dwane, global strategist
and portfolio manager at Allianz Global Investors.
"Like in the financial crisis though, when the Fed does
things out of plan, I feel it is more unnerving than
reassuring."
German bond yields briefly fell but 10-year paper was last
little changed at -0.61% DE10YT=RR . Italian bond yields
extended their decline with 10-year yields down 9 bps on the day
at 1.06% IT10YT=RR .
Britain's pound meanwhile rose further and was last up 0.5%
at $1.2825 GBP=D3 .

Latest comments

Install Our App
Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.