Global equities are edging higher following Monday’s drop as investors weigh optimism that intensifying global lockdown efforts along with historic stimulus efforts paint a positive outlook for a U-shaped recovery, possibly later this year. While U.S. did open the week limit down, Monday trade did not see the need for circuit breakers.
The Fed’s latest round of stimulus is a gamechanger. The U.S. central bank launched unlimited QE, corporate bond intervention, enhancements to the commercial paper funding facility and telegraphed a main street lending program to small businesses. The Fed has delivered three huge acts in March and this latest one should satisfy everyone, including President Trump.
Heading into the weekend, optimism was high that Congress was going to quickly wrap up a $2 trillion stimulus package, but partisan politics appears set to delay things for possibly a few more days. Lessons from the global financial crisis should…
