* Asian stock markets: https://tmsnrt.rs/2zpUAr4
* Tracking the coronavirus: https://tmsnrt.rs/3aIRuz7
* Lack of detail about Trump stimulus unsettles markets
* Policymakers struggle to stay ahead of coronavirus
* Oil futures bounce again on output cut hopes
By Stanley White
TOKYO, March 11 (Reuters) - Stock futures in London and
across Europe jumped on Wednesday after the Bank of England
joined other major central banks in cutting interest rates to
offset economic damage caused by the coronavirus outbreak.
FTSE futures FFIc1 were up 0.75%. Euro Stoxx 50 futures
STXEc1 were up 1.1% at 2,946, German DAX futures FDXc1 rose
0.73%, and France's CAC 40 futures FCEc1 were up 1.46%.
In contrast, Asian shares and U.S. stock futures both fell
as growing scepticism about Washington's stimulus efforts to
fight the coronavirus outbreak knocked the steam out of an
earlier rally.
U.S. stock futures ESc1 were down 2.39% and MSCI's
broadest index of Asia-Pacific shares outside Japan
.MIAPJ0000PUS was down 1.15%.
The BoE unexpectedly cut interest rates by half a percentage
point to 0.25% to bolster Britain's economy against disruption
caused by the coronavirus. The BoE did not announce any new quantitative easing bond
purchases, but it did launch a new scheme to support lending to
small businesses.
"We're expecting details on the UK budget, and the timing
suggests the BoE is aiming to double the impact by combining
monetary policy with fiscal policy," said Takuya Kanda, general
manager of research at Gaitame.com Research Institute in Tokyo.
"This should help give markets some cover, which were
damaged by a seeming lack of decision on the part of the Trump
administration."
This week, U.S. President Donald Trump said he would take
"major steps" to ease economic strains caused by the spread of
the flu-like virus. Headlines focused on discussions of a
payroll tax cut, which helped lift market sentiment.
On Wall Street, all three major indexes jumped nearly 5% on
Tuesday, one day after U.S. equities markets suffered their
biggest one-day losses since the 2008 financial crisis.
However, the lack of major announcements since has left some
investors unimpressed.
The pound GBP=D3 sank by more than half a cent against the
dollar after the news of the first UK rate cut since August
2016.
The dollar resumed its decline against the yen JPY=EBS ,
the Swiss franc CHF=EBS and the euro EUR=EBS , weighed by
uncertainty about the U.S government's response.
Benchmark U.S. 10-year Treasury yields US10T=RR fell to
0.6644%, well above Monday's record low yield of 0.3180%.
But analysts said yields could fall further as there are
still strong expectations that the U.S. Federal Reserve and
other central banks will support fiscal stimulus with monetary
easing.
Market participants largely expect the Fed to cut interest
rates for the second time this month at the conclusion of next
week's regularly scheduled policy meeting after surprising
investors last week with 50 basis points rate cut. FEDWATCH
The euro is also in focus before a European Central Bank
meeting on Thursday, where policymakers will face pressure to
ease policy after Italy put the entire country on lockdown in an
attempt to slow new coronavirus infections.
U.S. crude CLc1 rose 1.37% to $34.38 per barrel, while
Brent crude LCOc1 rose 1.96% to $37.95 in a topsy-turvy
session. Futures initially jumped on signs that U.S. producers
would cut output but then pared gains as the trading day
progressed.
On Monday, the oil market plunged with futures recording
their largest percentage drop since the 1991 Gulf War as a price
war between Saudi Arabia and Russia broke out. Many analysts say investors need to remain on guard for
further market volatility because the coronavirus still poses a
risk to public health in many countries, which could place
additional strains on the global economy.
Spot gold XAU= , which is often bought as a safe-haven
during times of uncertainty, rose 0.71% in Asia to $1,639.78 per
ounce. GOL/
The virus emerged late last year in the central Chinese
province of Hubei but has since spread, leading to more than
4,000 deaths.
Shares in China .CSI300 fell 0.89% on Wednesday. China
reported an uptick in new confirmed cases of coronavirus,
reversing four days of decline. Restrictions on movement and factory closures aimed at
stopping the epidemic are putting the brakes on global economic
activity.
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1 Equities bonds total return indexes https://tmsnrt.rs/2IFLbPK
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(Editing by Sam Holmes and Jason Neely)