The pan-European STOXX 600 index is down by 7.86%, the FTSE 100 of the London stock exchange by 6.82%, the DAX of the Frankfurt stock exchange with 7.43%, and the CAC 40 of the Paris stock market with 8.79%. In Milan, the FTSE MIB index fell 7.74%, while the IBEX 35 index of the Madrid stock market lost 8.77%.
The Fed’s interest rate cut was followed Monday by a further monetary easing by the Bank of Japan, which will intensify acquisitions of publicly traded funds and other risky assets.
The Central Bank of New Zealand also shocked by reducing key interest by 0.75 percentage points, while the Reserve Bank of Australia supplemented the liquidities in the financial system. South Korea has lowered interest rates, while Russia has set up a $ 4 billion anti-crisis fund.
Japanese Prime Minister Shinzo Abe announced that the leaders of the Group of the Seven Most Developed Nations in the World (G7) will have a teleconference at 14:00 GMT (16:00 Romania time) to discuss the crisis.
The MSCI index of shares in the Asia-Pacific region, except for Japan, fell by 4%, to the lowest level since the beginning of 2017, while the Japanese Nikkei index fell by 2%.
China announced a 13.5% drop in industrial production and retail sales by 20.5%.
Shanghai’s blue-chip shares fell 3%, even though China’s central bank was surprised by a further round of liquidation in the financial system. The Hong Kong Stock Exchange Hang Seng fell 3.4%.
Australia’s S & P / ASX 200 fell 9.7%, the worst since a crash in 1987.
The Fed’s reduction in key interest and the promise of bond purchases led to a drastic decline in the yield on 10-year Treasury securities to 0.68% to 0.95% on Friday.
In southern Europe, bond yields have risen to several months’ highs, with investors worried about the rapid spread of coronavirus.
The yields on Spanish and Portuguese bonds over 10 years rose to the highs of the last nine and a half months, of 9.74% and 0.93%, being up to 0.13 percentage points above the level of Friday.
In France, the yield on 10-year bonds increased by up to 0.14 percentage points, to 0.14%, the highest level in the last three and a half months, and the yield on Italian bonds with the same maturity advanced by 0.17 points percentage, 1.98%.
The decline in US Treasury bond yields depressed the dollar on Monday, which recovered some of the declines. Thus, the dollar fell 1.6% against the Japanese yen, to 106.37 yen on oil. The Euro advanced nearly 1% to $ 1,1212 per unit.
The price of oil fell by up to 6.5%, to $ 31.64 per barrel, while WTI oil, the benchmark in the US, dropped by $ 1.64 to $ 30.94 per barrel.
The price of gold fell 0.8% to $ 1,541.34 an ounce