European stocks climb in aftermath of emergency Fed rate cut

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Fed emergency rate cut remains updraft for European stocks

European stocks made gains early on Wednesday, on hopes governments and central banks will ease the impact of the coronavirus crisis after the Federal Reserve’s surprise rate cut.

After suffering its worst week since the 2008 financial crisis — falling 12.7% — the Stoxx 600 has now risen 2.7% so far this week.U.S. stock futures YM00, +2.10% ES00, +1.87% NQ00, +2.02% surged higher after former Vice President Joe Biden racked up a string of victories in the Super Tuesday primaries, reclaiming the lead over Sen. Bernie Sanders in the race for the Democratic nomination. The Dow Jones Industrial Average DJIA, -2.94% had closed 2.

The World Bank also stepped in overnight to promise $12 billion to support countries dealing with the health and economic impacts of the virus. A sharp drop in China’s service sector activity — to record lows in February — provided further clues as to the overall economic impact of the virus.Intu INTU, -28.35% shares plunged 22% as the U.K. shopping mall owner abandoned plans to tap investors for emergency cash. The London-listed company had planned to raise up to £1.5 billion to shore up its balance sheet after being hit by the collapse of several retail chains and falling commercial property values.

 

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Stocks Fall Sharply Despite Surprise Fed Rate CutU.S. shares and government bond yields dropped sharply after the Federal Reserve lowered interest rates, but failed to assuage the anxieties of money managers monitoring the economic fallout from the coronavirus epidemic. Trump: I'm ordering a halt of the StockMarket. So it can't fall any further. But that's not Capitalism. That's Socialism. Trump: I don't care. The tanking stockmarket is going to destroy my economy & I'll go to jail if I don't get re-elected. But that's fascism. Trump: Do it Im so fuckin paranoid i need to quit or somethin i dont know anymore
Source: WSJ - 🏆 98. / 63 Read more »