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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
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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 .

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