Central banks take action, but sell-offs continue
Financial markets were plagued by global epidemics last week. Investor confidence was still very weak, and the market trend was highly emotional. Before the market open today, the Federal Reserve suddenly further cut the interest rate by 100 basis points. Australia, New Zealand and Japan also announce the stimulus plan together, in order to deal with the impact of the global epidemic, stimulate the frozen economy.
However, market concerns have not eased and selling pressure continues. At present, the Dow futures are still falling around 1000 points. Oil prices remained sluggish, and US oil fell to the $30 level.
Market participants believe that the Fed’s emergency interest rate cut is not shocked because it is only a few days before the FOMC. Instead, “crisis” feeling is much more dominated. It is generally expected that the financial markets in the next few weeks will still fluctuate violently.