European stocks jump, bond yields slide after Fed's emergency rate cut
Add BT as a preferred source
[LONDON] European stocks extended gains and bond yields fell in a sharp risk-on trade after the US Federal Reserve cut interest rate on Tuesday by a half percentage point in an emergency move.
The Fed said it was cutting rate to a target range of 1.00 per cent to 1.25 per cent, saying "the coronavirus poses evolving risks to economic activity".
The pan-European STOXX 600 index jumped 3.2 per cent to day highs after the news, while German bond yields briefly fell with 10-year yields last up 3 bps on the day at -0.59 per cent.
Italian bond yields extended their falls, with 10-year yields last down 9 bps on the day at 1.06 per cent.
Britain's pound meanwhile rose further and was last up 0.6 per cent on the day at US$1.2825.
"We are seeing talk translating into action which is very welcome," Peter Kinsella, head of FX strategy at UBP.
Navigate Asia in
a new global order
Get the insights delivered to your inbox.
REUTERS
Decoding Asia newsletter: your guide to navigating Asia in a new global order. Sign up here to get Decoding Asia newsletter. Delivered to your inbox. Free.
Share with us your feedback on BT's products and services
