Global markets shows mixed feelings

With fears of cornavirus dominating the headlines and the announcement of the federal reserve cutting interest rates, global markets have expressed mixed feelings when it comes to determing potential economic impacts.

The Dow Jones Industrial Average experienced a volatile rollercoaster, closing at -785.91 points lower, or nearly 3%, to 25,917.41; but it showed a robust rebound by more than +300 points earlier in the day. The 30-stock average gyrated between sharp gains and solid losses after the decision was announced.

 

 

Stocks slipped as the 10-year US Treasury yield fell below 1% for the first time ever. The yield was back above 1% at the closing bell.

In early trading, London’s FTSE 100 lost 0.3% to 6,700.71 while Germany’s DAX added 0.2% to 12,010.94. France’s CAC 40 shed 0.2% to 5,359.75.

“Despite the Fed cutting rates in support of the U.S. market, fear had clearly returned to reign in the markets,” Jingyi Pan of IG said in a report.

The U.S. rate cut was the Fed’s first outside a regularly scheduled meeting since the 2008 global crisis. That prompted some traders to think the Fed might foresee an even bigger economic impact than markets fear.