Market sentiment may reach a short-period’s bottom, long at dip
The worst stock rout since the global financial crisis showed signs of at least a pause on Monday, prompted by optimism that central banks will once again save the day.
On Monday, US futures rose about 0.6% after the closed out its worst week since 2008, and European contracts climbed about 2%. Asian trading began Monday with further declines in stocks and gains in bonds, before the Bank of Japan joined the Federal Reserve in issuing a rare statement assuring “appropriate” actions will be taken. In Australia, an interest-rate cut is now seen as a done deal on Tuesday. The US, Australian and New Zealand hit fresh record lows. The slid.
Investors appeared to shift from fear about the spread of the coronavirus and the economic damage it’s causing to encouragement that policy makers will act. China’s Index rose more than 3% even after that country saw a much deeper contraction in manufacturing than…