|Day's range||0.7130 - 0.7730|
|52-week range||0.3980 - 2.6140|
Stocks cut earlier losses from the overnight session and opened higher Thursday after the Federal Reserve unexpectedly unleashed a new multi-trillion-dollar stimulus plan to support businesses during the coronavirus pandemic.
Global stocks climbed and credit markets rallied into the Easter long weekend after the Federal Reserve unleashed new stimulus to prop up the economy. The S&P 500 index, which has advanced 25 per cent from its March lows, closed up 1.4 per cent, led by gains in bank and real estate stocks. The holiday-shortened week was the index’s best since 1974, having risen 12 per cent over the four sessions.
In its minutes, the Fed also reiterated its previous stance that it would be appropriate to maintain rates at the current near-zero levels until policymakers were confident that the economy had “weathered recent events.”
U.S. long-term mortgage rates fell this week for the second straight week as anxiety has spiraled over devastation to the economy from the coronavirus pandemic. Mortgage buyer Freddie Mac reported Thursday that the average rate on the benchmark 30-year loan dipped to 3.33% this week from 3.50%. Freddie Mac said demand from prospective homebuyers has weakened in response to economic concerns.
Sentiment remains exceptionally fragile as investors are a flat-out bundle of nerves fretting over the potential impact the coronavirus will have in the US markets and the economy.
Asian stocks were meandering Thursday after a White House warning that as many as 240,000 Americans might die of the coronavirus sent Wall Street tumbling and signs of the outbreak's global economic cost increased. Benchmarks in Tokyo and Hong Kong opened lower but were trading higher by midday, and losses in early trading were smaller than Wall Street's 4.4% overnight fall. The U.S. warning added to anxiety among investors who are trying to figure out how long and deep this history-making global economic downturn might be.
Stocks ended Tuesday’s session lower, closing out the worst quarter for the Dow since 1987 and its first three-month start to the year on record.
Stocks rose Monday, extending last week’s bounce as market participants continued tracking the spread of the coronavirus and the daily life disruptions it has invoked around the world. U.S. Treasury yields tumbled further, and Brent crude oil prices dropped to the lowest level in 17 years.
Stocks staged a rally on Wednesday, extending the previous day’s surge with the Dow boosted by gains from components like Boeing and Nike, and after Washington announced a final deal on a $2 trillion stimulus package designed to combat effects of the coronavirus.
Major government bond yields will trade near their current lows in the coming year, foreshadowing a deep recession driven by the coronavirus pandemic, according to fixed-income analysts in a Reuters poll who said the bias was for them to drift lower. As global share markets crashed, traders and investors fled headlong to the safety of bonds to hedge the economic trauma from the coronavirus, pushing sovereign bond yields to record lows earlier this month.
The Federal Reserve called a third emergency meeting to combat the economic impact of the novel coronavirus and unveiled a number of new and “extensive” measures on Monday.
With a more extensive and far quicker spread of the virus than generally expected just weeks ago and with early evidence that the impact on Chinese activity was far worse than initially projected, investors are hunkering down for a severe global recession.
Virus scare drives demand for U.S. debt, which sent 10-year Treasury yield to a record low. Mortgage rates are most likely to fall as they follow the direction of the 10-year Treasury note yield.
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The latest developments have led to huge demand for Treasuries. As such, investors could tap the opportune moment by going long on this instrument with the help of ETFs.