🐂 Not all bull runs are created equal. November’s AI picks include 5 stocks up +20% eachUnlock Stocks

GLOBAL MARKETS-Asian stocks find support after ECB purchase programme

Published 19/03/2020, 10:57 am
© Reuters.
EUR/USD
-
US500
-
JP225
-
LCO
-
JP225
-

* ECB launches $850 bln bond buying program

* U.S. stock futures turn positive, euro rises

* ASX higher in early trade

* Asian stock markets : https://tmsnrt.rs/2zpUAr4

By Tom Westbrook

SINGAPORE, March 19 (Reuters) - Asian stock markets fought to stabilise on Thursday, as the latest promise of stimulus from the European Central Bank propped up sentiment while the world struggles to contain the coronavirus pandemic.

U.S. stock futures EScv1 turned positive and Australia's S&P/ASX 200 rose 2% after the ECB announced a bond-buying programme. Nikkei futures NKc1 pointed to a positive open and the euro EUR= found support. FRX/

The ECB will buy 750 billion euro ($820 billion) in bonds through 2020, with Greek debt and non-financial commercial paper of sufficient credit quality eligible under the programme for the first time. given us a shot in the arm," said Michael McCarthy, chief market strategist at brokerage CMC Markets in Sydney, but he added he expects it to be short-lived.

"This is about the impact on demand and the disruption of global supply chain...(bond buying) is not speaking directly to the key problem for markets. I doubt very much this is a turning point," he said.

Overnight on Wall Street, the S&P 500 .SPX fell 5% and is down nearly 30% over a month. Selling extended across almost all asset classes as investors liquidated portfolios. .N

Bonds have suffered their sharpest two-day selloff in nearly 20 years. Gold is down 3% for the week and oil fell to an 18-year low as quarantine lockdowns spread across the globe.

In currency markets, the dollar is king and jumped to a three-year high overnight amid a rush for the world's reserve currency in times of crisis.

On Wednesday, the virus outbreak worsened. Italy reported the largest single-day death toll from coronavirus since the outbreak began in China in late 2019. has killed more than 8,700 people globally, infected more than 212,000 and prompted emergency lockdowns on a scale not seen in living memory.

"It is serious. Take it seriously," German Chancellor Angela Merkel told her nation in a televised speech amid the shutdown of almost everything except bakeries, banks, pharmacies and grocers. ECB's move follows emergency interest rate cuts around the globe, enormous fiscal support packages and six central banks promising discount dollars to banks to alleviate a squeeze in greenback funding.

But so far none of it has been able to put a floor under dire sentiment, and some $15 trillion in shareholder value has been wiped out in little more than a month of heavy selling.

"I'd say the market is uninvestable at this point," said Daniel Cuthbertson, managing director at Value Point Asset Management in Sydney. "Until we get a containment of global contractions, the market is just going to be directionless."

On Thursday the Reserve Bank of Australia pumped a record $7.4 billion into the banking system and is due to make an out-of-cycle policy announcement at 0330 GMT. are also looking to a March German sentiment survey due at 0900 GMT and U.S. joblessness figures due at 1230 GMT for any early signals on how the virus headwinds are hitting two of the world's economic powerhouses.

Oil steadied after an overnight rout, with Brent crude LCOc1 settling at $24.88. O/R

($1 = 0.9149 euros)

<^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^ Asia stock markets

https://tmsnrt.rs/2zpUAr4 Asia-Pacific valuations

https://tmsnrt.rs/2Dr2BQA

^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^> (Editing by Sam Holmes)

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.