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Anonymous ID: 59a92b March 15, 2020, 6:12 p.m. No.8431169   🗄️.is đź”—kun   >>1193 >>1202 >>1285 >>1571

Market Report-Treasury's slide, oil and US Futures drop

 

BOJ moves meeting forward as Nikkei rocky after US Fed rate cut

 

Hong Kong Cuts Benchmark Interest Rate, Following Fed’s Move

 

The Hong Kong Monetary Authority reduced its benchmark interest rate, following the Federal Reserve’s move. The HKMA on Monday lowered its base rate by 64 basis points to 0.86%, hours after the Fed’s 100 basis points cut, according to the institution’s page on Bloomberg. This was the second rate reduction this month by both monetary authorities. Hong Kong essentially imports U.S. monetary policy as the local dollar is linked to the greenback. Central banks worldwide are stepping up monetary stimulus to counter the effects of the coronavirus. Gold advances +6.70 +0.44% SIlver drops -0.11 -0.72%.

Dollar Index

 

The Bank of Japan announced on Monday morning that it will hold its policy meeting, initially planned on Thursday, this afternoon, in a sign of global policy coordination.

 

Japan's benchmark index opened up 1.6% on Monday morning, following the U.S. Fed slashing rates to nearly zero to help counter the impact of the new coronavirus on the global economy. Tokyo's Nikkei Stock Average jumped nearly 300 points to 17,726, its first rise in four days after a turbulent week that sent global stock markets crashing over fears of a global economic slowdown, as the coronavirus pandemic hits global supply chains while cases continue to surge in Europe and the U.S. Central banks and governments have been scrambling to stem the market carnage, with the Fed cutting interest rates on Sunday as well as announcing it will purchase $700 billion in Treasuries and mortgage-backed securities. In a news conference Fed chairman Jerome Powell said the pandemic was having a "profound" impact on the economy. Speaking after the emergency meeting, which was held in place of the Fed's regular rates setting decision scheduled for this week, Mr Powell warned it was too early to tell how much the outbreak will impact the economy.

 

"The economic outlook is evolving on a daily basis and it is depending on the spread of the virus… that is not something that is knowable," he said.''

 

Here is the relevant comments from the Press Conference

 

ON THE U.S. ECONOMIC OUTLOOK

“It’s very hard to say how big the effects will be or how long they will last. That’s going to depend of course on how widely the virus spreads, which is something that is highly uncertain and I would say, in fact, unknowable.”

 

ON TODAY’S FED ACTIONS

“We thought it was quite important for us to take strong measures to support proper market functioning in important markets.”

 

ON NEGATIVE INTEREST RATES

“We do not see negative policy rates as likely to be an appropriate policy response here in the United States.”

 

ON LIMITS OF MONETARY POLICY

“We don’t have the tools to reach individuals and particularly small businesses and other businesses and people who may be out of work… we don’t have those tools… this is a multifaceted problem and it requires answers from different parts of the government and society… I think fiscal policy is a way to direct relief to particular populations and groups… we do think fiscal responses are critical.”

 

ON ITS ASSET PURCHASE PROGRAM

“There’s no monthly cap, no weekly cap… that language is open ended and it’s meant to send a signal to the market that we’re not going to be bound by, for example, $60 billion a month or anything like that. We’re going to go in strong starting tomorrow.”

 

ON IF HE HAS TAKEN CORONAVIRUS TEST

“I feel fine, I feel very well, so there’s no reason for me to be tested.”

 

ON FED REQUESTING CHANGES TO ITS POWERS FROM CONGRESS

“We have not at all made a decision at all to request further tools or authorities from Congress. We have not made that decision, that’s not something we’re actively considering right now.”

 

ON FED’S DECISION NOT TO RELEASE ECONOMIC FORECASTS

“A number of FOMC participants had already reached out to make the point, the economic outlook is evolving on a daily basis and it really is depending heavily on the spread of the virus and the measures taken to affect it and how long that goes on and that’s just not something that is knowable. Actually writing down a forecast in that circumstance didn’t seem to be useful and in fact could have been more of an obstacle to clear communications than a help.”

 

https://asia.nikkei.com/Business/Markets/BOJ-moves-meeting-forward-as-Nikkei-rocky-after-US-Fed-rate-cut

https://www.bloomberg.com/markets/stocks/futures

https://www.macrotrends.net/2566/crude-oil-prices-today-live-chart

https://www.marketwatch.com/investing/bond/tmubmusd10y?

https://www.kitco.com/charts/livegold.html

https://www.reuters.com/article/us-usa-fed-highlights/quotes-from-federal-reserve-chair-powells-press-conference-idUSKBN21302K