Markets mostly rise after emergency Fed cut sinks Wall St

In the first unscheduled rate reduction since 2008, the Fed axed its key interest rate by a half-point to a range of 1.0-1.25, arguing it was needed because "coronavirus poses evolving risks to economic activity".

In commodities, oil rallied on indications that the OPEC crude producing cartel could slash output this week in order to prop up prices. In late morning deals, London stocks jumped 1.3 percent, while there were 1.0-percent gains in Frankfurt, Paris and Milan. Yet many analysts predict the US rate cut will not be enough to offset virus-fuelled economic turmoil."It is the first emergency cut since the financial crisis -- and the rate cut will be fairly ineffectual in offsetting the coming hit to the economy from the coronavirus," said Kingswood chief investment officer Rupert Thompson, predicting that the Bank of England could follow the same path.

The move initially sent Wall Street rallying, but traders soon reversed course as they grew increasingly nervous about the economic outlook. However, Asian investors battled to build on the previous day's gains and Tokyo ended up 0.1 percent, while Shanghai added 0.6 percent.

Source: Financial Digest (financialdigest.net)

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