Global equity markets snapped a week of losses on Monday as investors bet on a co-ordinated worldwide central bank action plan to inject billions of dollars of fresh stimulus into the global economy and stabilise growth in the face of the coronavirus threat.
Yarra Capital Management’s head of macro and strategy, Tim Toohey, thinks central banks are primed for synchronised global easing on the back of the US Fed’s press release over the weekend in response to the virus.
“It looks like this is one of those events, we’ve seen before in history, where central banks have co-ordinated and talked, obviously that release by [US Fed chair] Powell is very telling that easing is imminent,” he said.
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