Global market sell-off lingers despite $4 trillion Fed support; Wall St. drowns


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Global market sell-off lingers despite $4 trillion Fed support; Wall St. drowns

On Monday, the 23rd of March 2020, a gauge of global equity indices slid further despite an elephantine $4 trillion in fiscal aid package from the US Federal Reserve, while the safe-haven assets such as spot gold futures’ prices, US Treasury alongside German bonds climbed higher, highlighting the scale of panic-driven sell-off the coronavirus pandemic has been posing to a rapidly softening global economy.

Apart from that, a number of industrial metals had plunged to their multi-year lows, while shanghai Copper, a bellwether for global factory activities had plunged to its lowest level in 11 years over frets of a severe recession and the black gold kept plunging amid a double whammy of Saudi-triggered supply glut alongside a coronavirus-driven demand crunch.

Nonetheless, although the US stocks appeared to be steering back in to the greens after Fed’s monstrous fiscal aid package, but following leading Wall St. lender Morgan Stanley and Goldman Sachs warning that the global growth could dip to a 74-year low figure in 2020 due to the coronavirus crises, Wall St.

had pared earlier gains and drowned further in to a bearish territory, while a slew of European stock exchanges had been back in the reds as recession frets had been whacking away investors’ optimism or what was left of it.

Citing statistics, on Monday’s (March 23rd) Wall St. wrap up, Dow dropped 3.95 per cent to 18.416.29, erasing all of its gains scored during the term of US President Donald Trump, benchmark S&P 500 shed 3.75 per cent to 2,218.40, while Nasdaq was nudged 1.42 per cent lower to round off the day at 6,781.81.

Besides, on the other side of the Atlantic, the regional pan-European STOXX 600 shed 4.30 per cent, while the MSCI’s gauge of global stocks across the globe that keeps track of 49 stock exchanges was flumped 3.81 per cent and the emerging market stocks were hit with a heavy whiplash of 5.61 per cent.

Elsewhere, the MSCI’s broadest index of Asia-Pacific shares outside Japan ended up the day down by 5.75 per cent, while Japan’s Nikkei 225 reported an unprecedented gain of 2.05 per cent.