On Monday, the 16th of March 2020, during mid-day Asia-Pacific trading hours, a gauge of global equity indices alongside US stocks' futures had been muddling in to the muds, as US Federal Reserve’s emergency rate-cut by 100 basis percentage point to a target range between 0.0 per cent to 0.25 per cent alongside RBNZ’s (Reserve Bank of New Zealand) rate-cut of 75bps had botched to calm investors’ nerve and had stoked further coronavirus-driven sell-offs.
Meanwhile, the American dollar fell sharply against the safe-haven Yen alongside euro following the rate-cut and New Zealand Dollar had witnessed its lowest level since May 11th 2009 following a 75bps rate cut over coronavirus frets.
Besides, adding that the Fed alongside other Central Banks’ invasive course of actions to cushion up the global economy appeared to have backfired on global equity indices, a chief equity market strategist at Federated Hermes in NY, Phil Orlando said earlier on Monday (March 16th), “(The) market is wondering what the Fed knows that the rest of us don’t.
Is COVID-19 an even bigger deal than we think?” Citing statistics, while this report was being prepared, in mid-day Asia-Pacific trading hours, E-mini futures for the S&P 500 slumped as much as 4.77 per cent, while Japan’s Nikkei 225 dropped 6 per cent and Australia’s ASX 200 took a nosedive of 7 per cent.
In the commodity market, US crude futures’ prices fell by 5 per cent to dive below $30 per barrel, while Brent Crude dropped more than 3 per cent to $32.03 per barrel.