Equities rise on hopes of global central bank stimulus
Risk is battling back a little bit to kick start the new week as investors begin to focus on hopes of global central bank stimulus in the coming days to counteract fears surrounding the coronavirus outbreak across the globe.
There is chatter of a potential emergency 50 bps rate cut by the Fed with the RBA likely to kick things off tomorrow before the Bank of Canada steps in on Wednesday.
This is giving a mild relief to the market after the bloodbath last week, with investors seeing reason to cover positions after the rout. A V-shaped recovery in the market is still not guaranteed but at least there is some hope for now.
Elsewhere, the Hang Seng is up by 0.9% while the Shanghai Composite is up by 3.3% on the day. US futures are trading ~0.6% higher, following a hell of last-minute surge in Wall Street towards the end of the Friday close.
In the currencies space, the yen has seen early gains dissipate with USD/JPY rising from lows near 107.00 to 108.25 currently. Meanwhile, the aussie and kiwi have also closed their opening gaps lower to sit higher on the day - for now at least.
