Searcher

Published on Tuesday, March 3, 2020 | Updated on Tuesday, March 3, 2020

Market comment | Fed made inter-meeting 50bps interest cut

The Fed cut 50bps interest rate and the ECB pivoted suggesting it is ready to take appropriate measures, while the G7 pledged a coordinated action. However, risky assets failed to gain much traction, while market risk measures such VIX remained high.

Key points

  • Key points:
  • Fed fund futures still price in additional rate cut.
  • The ECB pivoted and seems prone to implement stimuli.
  • February’s preliminary Eurozone core inflation inched up to 1.2% YoY in line with expectations.
  • Safe haven yields pared increase, with the 10Y yield returning to levels below 1.1%.
  • Equity markets rebounded in Europe, but the Fed action failed to spur an additional upward move in U.S. equity markets.

Geographies

Topics

Has this information been useful?

New comment

Be the first one to add a comment

Load more

You may also be interested in