In Asian Equity Markets indices were mixed n Wednesday trade following a tumble overnight on Wall Street despite the U.S. Federal Reserve announcing an emergency rate cut. South Korea’s Kospi led gains among major Asian markets as it jumped 2.09%. Hong Kong’s Hang Seng index edged 0.12% higher. The Shanghai composite was slightly higher. In Japan, the Nikkei 225 was 0.3% higher. Meanwhile, stocks in Australia declined, with the S&P/ASX 200 down 1.82%.
In Currency Markets the U.S. dollar hovered near five-month lows versus the yen on Wednesday after the U.S. Federal Reserve’s emergency 50 basis point rate cut sparked more anxiety about the impact of the coronavirus and sent Treasury yields tumbling to record lows. The euro was one of the currencies to benefit most from the broad-based dollar weakness as traders bet the Fed will cut rates more than the European Central Bank. The euro last traded at $1.1166, close to a one-month high reached on Tuesday.
In Commodities Markets oil prices rose more than 1% on Wednesday on expectations that major producers have moved closer to an agreement to enact deeper output cuts aimed at offsetting the slump in demand caused by the coronavirus outbreak. Brent crude rose by 58 cents, or 1.12%, to $52.44 a barrel, after settling down 4 cents in the previous session. U.S. West Texas Intermediate (WTI) futures rose by 53 cents, or 1.12%, to $47.71 a barrel, up for a third session.
In US Equity Markets indices fell in a volatile session on Tuesday after the Federal Reserve surprised investors with a half percentage-point cut in interest rates, amplifying fears about the magnitude of the coronavirus’ impact on the economy. The S&P 500 lost 3.25% to 2,989.76. The Nasdaq Composite fell 3.54% to 8,635.25. Ten of the 11 major S&P sectors fell, with the information technology index falling 4.6%. Apple and Microsoft fell 5% and 4%, respectively.
In Bond Markets U.S. benchmark 10-year Treasury yields on Tuesday slid below 1% for the first time, after the Federal Reserve slashed interest rates by half a percentage point in an emergency move to ease the economic fallout from the fast-spreading coronavirus. U.S. yields were down across the board after the Fed action, as investors grabbed safe-haven Treasuries amid the uncertainty. U.S. 10-year yields fell to 1%, from 1.088% late on Monday. Earlier in the session, 10-year yields hit a record low of 0.906%.