The dollar slipped against other major currencies as some traders quickly began to speculate about another Fed rate cut later this month.
Stock markets were higher on Tuesday but off their peaks as traders considered the real-world impact of a surprise US rate cut aimed at shielding the economy from the impact of the spreading coronavirus.Central bank pledges of action had already boosted shares that were hammered last week as major global stock markets lost around 12 percent in value.
In New York, the Dow Jones index was a touch higher almost an hour after the Fed’s announcement, building on a huge gain of more than five percent the previous day, its biggest one-day percentage gain since 2009. But analysts also noted that key indexes had pulled back from much stronger gains seen in their initial reaction.
On energy markets, the price of Brent crude was up in London exchanges, with dealers betting on major producers cutting output to address a predicted plunge in crude demand. The Bank of England will meanwhile “take all necessary steps” to support the UK economy from coronavirus fallout, said governor Mark Carney.
South Africa Latest News, South Africa Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
China’s metals sector issues SOS to state as stocks pile upThere are ominous signs a physical demand shock is playing out in China, which may generate a second-wave hit to prices
Read more »
Fuel shortage imminent in Liberia as stocks deplete, says refinery headLiberia's current fuel stocks would only last 48 days, and inadequate contingency measures could mean a looming fuel crisis, the country's refinery head has said.
Read more »
Gold strengthens as virus lifts hope for rate cutFed fund futures show traders expect a 75 basis point rate cut by the US central bank
Read more »
Why Spain’s jobless rate remains stubbornly highSpain has the EU’s highest rate of precarious temporary contracts, the highest rate of high-school dropouts and among the highest portions of low-skilled workers
Read more »
Business Maverick: ‘Fear Factor’ Is Running High as Currency Markets Resume TradingTraders around the globe bracing for another rough week got an early taste of quite how brutal it’s going to be again in markets after risk currencies plummeted in early trading.
Read more »
Oil gains for second session as Opec+ likely to increase supply cutsOpec to meet to discuss output cuts amid hopes for co-ordinated G7 action to lift markets to counter the negative effects of the coronavirus
Read more »