Expectations for global coordinated monetary policy stimulus are driving a rebound in risk sentiment.
The is up a bit over 2% heading into the close. While the closed up 0.1% yesterday in Europe, the UK was up over 1%, and most Asian bourses were better as well, notably the up 3.3%.
Fixed income rallied further; however, U.S. yields down 4bps to 1.11%, although growing expectations of Fed easing have seen the yield curve steepen again.
Oil recovered almost 5%, while gold is down a bit.
The much-improved sentiment came after the Bank of Japan on Monday feeding of the Federal Reserve Boards lead on hinting at policy support, stating that it will “strive to provide ample liquidity and ensure stability.”
However, The ECB refrained from offering a similar backstop of support. Still, European central bankers nonetheless sought to calm nerves Monday when ECB Vice President Luis de Guindos noting that the virus adds a “new layer of uncertainty” but that there is “not yet a…