In Asian Equity Markets the S&P/ASX 200 in Australia led losses among the region’s major markets as it fell 7.54%, with the heavily weighted financial subindex diving more than 8%. Shares of the country’s major banks saw steep declines: Australia and New Zealand Banking Group fell 9.79%, Commonwealth Bank of Australia slipped 7.17%, Westpac fell 8.72% and National Australia Bank declined 8.58%. Hong Kong’s Hang Seng index also fell 2.19%. Mainland Chinese stocks were down, with the Shanghai composite 0.55%.
In Currency Markets the U.S. dollar fell against a broad range of currencies on Monday after the U.S. Federal Reserve made another surprise interest rate cut and major central banks took steps to relieve a shortage of dollars and provide extra liquidity. The U.S. Federal Reserve cut rates to a target range of 0% to 0.25% on Sunday, U.S. time, and said it would expand its balance sheet by at least $700 billion in coming weeks. The dollar fell 0.6% to 106.85 yen on Monday, trimming some of its losses as traders braced for the BOJ.
In Commodities Markets oil extended losses on Monday as an emergency rate cut by the U.S. Federal Reserve failed to soothe global financial markets panicked by the rapid spread of the coronavirus while a price war rages on between top producers. Brent crude fell $1.13 to $32.72 a barrel, tumbling after last week’s plunge of 25%, the largest weekly fall since 2008. The front-month price opened at a high of $35.84 but slipped to a low of $31.63.
In US Equity Markets index futures tumbled after resuming trading on Sunday after the U.S. Federal Reserve slashed rates back to near zero to help the global economy and investors digested the latest fallout from the escalating coronavirus pandemic. S&P 500 e-minis were down 115.75 points, or 4.29%. Indices clawed back some losses on Friday after its biggest one-day decline in three decades, as investors set their hopes on more global fiscal stimulus to stem a coronavirus-driven global recession.
In Bond Markets U.S. 10-year Treasury note futures price rose at the open on Sunday after the Federal Reserve unveiled a series of moves to help deal with the disintegrating global economy caused by the coronavirus pandemic. The U.S. Federal Reserve slashed rates back to near zero, restarted bond buying and joined with other central banks to ensure liquidity in dollar lending to help put a floor under a rapidly disintegrating global economy during the escalating coronavirus pandemic. U.S. Treasuries futures jumped more than a full point.