In this edition of ILIM’s weekly market bulletin:
As this morning’s steep sell-off has shown, growing fear about the global impact of the coronavirus is causing sharp price movements across most major asset classes. Global stock markets recorded modest losses last week, down just -0.2% despite significant daily swings – the S&P500 posted two daily gains of around 4%, a pair of roughly 3% falls and a near 2% decline.
In response to the outbreak, the US Federal Reserve cut interest rates by 50 basis points in attempt to cushion the economy from the effects of the virus. This was the first intra policy meeting rate cut since December 2008. Other central banks also cut rates and the ECB is likely to follow suit this week.
Oil prices sank to multi-year lows following Saudi Arabia’s response to Russia’s refusal to cut production. CLICK HERE