'Drop in an ocean': Bank of England's emergency rate cut lifts European stocks, but coronavirus fears rattle global markets | Markets Insider

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'Drop in an ocean': Bank of England's emergency rate cut lifts European stocks, but coronavirus fears rattle global markets

. US futures, Asian stocks, Treasuries, and oil slumped as investors feared that central banks and governments would fail to contain the coronavirus epidemic and its economic fallout., tempered capital requirements for banks, and promised cheaper funding to support lending as the coronavirus threat grows.

The surprise cut came hours before the unveiling of the UK government's annual budget. Chancellor Rishi Sunak is expected toas the nation navigates the Brexit transition and coronavirus outbreak. "The Bank of England fired its big bazooka today, but it's really an appetizer for the main course later," Neil Wilson, chief market analyst for Markets.com, said in a morning note.

"Unlike the Fed, which shot its bolt early, this is clearly part of a major coordinated response to the coronavirus pandemic with a twin-pronged monetary and fiscal package," he added.Naeem Aslam, chief market analyst at AvaTrade, described it as a"drop in an ocean" in a Wednesday note. He doubted it was"enough to soften the blow at all."

"In the short term this could spook markets, showing as it does the severity of the coronavirus epidemic," Adam Vetesse, an analyst at eToro, said in a morning note.

 

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Drop in the ocean is size-wise pretty much what England is. And turkey compared to Russia.

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