- Fears of a US recession overshadow massive stimulus measures.
- Dow Jones fell 900 points and triggered a limit down.
- Asian and European equities set to trade in the red amid risk-off.
The US Federal Reserve has decided this Sunday to cut rates to zero and launched a massive $700 billion quantitative easing program, indicating that the coronavirus outbreak has disrupted economic activity in many countries, including the United States. The announcement came just three days ahead of the official Central Bank meeting, somehow reflecting the urgency of authorities to fight an economic slowdown.
The Reserve Bank of New Zealand also trimmed rates at the beginning of the week, following a BOC’s second rate cut last Friday.
Despite the massive liquidity injection announcement, US futures plummeted with the DJIA down 900 points and hitting a limit down. Fears of recession overshadow stimulus. Risk-off would likely lead the way throughout Monday.
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