Stocks find no relief from Fed cut as pandemic fears intensify
JOHANNESBURG – Stock markets in emerging economies fell across the board on Monday as drastic stimulus measures from the U.S. Federal Reserve highlighted the degree of economic carnage expected from the coronavirus pandemic.
Stock markets ranging from Philippines to South Africa all lost between 2.4% and 7.9%, touching multi-year lows and taking MSCI’s index of emerging market shares down 4.2%. The index lost 12% last week – its steepest weekly loss since the 2008 global financial crisis.
The Fed slashed interest rates to near zero on Sunday and pledged to expand its balance sheet by at least $700 billion in the coming weeks, joining a coordinated move by global central banks to combat the economic fallout from the deadly flu-like virus.
Source: iol.co.za