Shadow of Covid-19 triggers volatility worldwide

JOHANNESBURG – Despite other economic data and financial market news, Covid-19 overshadows all and is dominant in asset prices on financial markets across the globe.

The biggest volatility on share and bond markets was experienced last week as share indices varied from gains of about 4percent on one day, only for a sell-off of more than 4percent the next day.

It seems that the decision of the US Federal Reserve to lower its bank rate by 0.5percent contributed – contrary to what would have been anticipated by the Fed – to more volatility, with bond yields tumbling and the dollar staying under pressure.

At the close on Friday, the S&P 500 index traded 7percent lower than the previous Friday.

Emerging markets were hit hard as investors were desperately looking for safe havens.

Source: iol.co.za