Big gains were seen for every asset class across the globe overnight as policymakers pulled out all the stops and adopted a “whatever it takes” approach to mitigate the economic hit from the coronavirus pandemic.
The latest moves will see the Fed increase the access to dollars to global central banks grappling with liquidity shortages, while governments around the world pledged or are considering as much as $3T in fiscal support.
Don’t forget that it’s also quad witching day, which refers to the simultaneous expiration of market index futures, stock futures, market index options and stock options.
The event can lead to higher volatility and more trading volume, giving speculators an opportunity for quick arbitrage opportunities.
Asia: Nikkei closed; Hang Seng +4.9%; Shanghai +1.6%; Sensex +2.9%.
Europe: FTSE 100 +2.3%; CAC 30 +4.5%; DAX +5%.
U.S. futures: Dow +4.1%; S&P 500 +3.7%; Nasdaq +4.8%.
Oil is up 6% at $27.45/bbl, gold is 2% higher at $1509/ounce and the 10-year Treasury yield is up 7 bps to 1.06%.