Global equity markets fell sharply on Thursday in their worst sell-off since markets crashed in March, while safe-haven assets rose after the Federal Reserve’s sobering outlook cast doubt on hopes for a V-shaped recovery from the coronavirus pandemic.
Global equity markets fell sharply on Thursday in their worst sell-off since markets crashed in March, while safe-haven assets rose after the Federal Reserve’s sobering outlook cast doubt on hopes for a V-shaped recovery from the coronavirus pandemic.
A broad rout slammed Wall Street, a 10-day winning streak in Asia came to a halt [. T] and major European bourses fell about 4%, ending a recent rally that had recouped much of the market’s deep losses and even drove the Nasdaq to record highs this week.
U. S. Treasury and euro zone government bonds rallied after the Fed signaled it plans years of extraordinary support to counter the economic fallout from a still spreading pandemic.
U. S. gold futures settled more than 1% higher and the dollar, yen and Swiss franc all benefited from safe-haven flows as Wall Street slumped.
The number of Americans seeking jobless benefits fell last week, but millions laid off due to COVID-19 continue to receive unemployment checks, suggesting the U. S. labor market could take years to heal even as hiring resumes.
The Fed is not painting a perfect V-shaped recovery and is going to be ultra-accommodative for a very long time, said Esty Dwek, head of global market strategy at Natixis Investment Managers in Geneva.
