world economy
Written by: Zhang Zijie
2020-03-20 04:55
Last updated: 2020-03-20 06:33After the U.S. stocks experienced a large number of consecutive trading days, the three major indexes closed slightly on the 19th. The Dow closed at 20087.19 points, up 188.27 points, or 0.95%; the Nasdaq was at 7150.58 points, up 160.73 points, or 2.30%; the S & P 500 index was 2409.39 points, up 11.29 points, or 0.47%.
Technology stocks generally performed well, pushing US stocks higher. Netflix once surged 9.1% and Amazon rose 2.78%. In addition, Uber's stock closed at $ 20.49, an increase of 38.26%. Uber Chief Executive Officer Dara Khosrowshahi said the company is capable of responding to the economic storm caused by the epidemic and emphasized sufficient liquidity. The company had $ 10 billion in cash available as of February, and even though its car rental business dropped by 60% to 70%, Uber Eats, a takeaway business, increased demand due to the outbreak.
The impact of the new coronavirus-borne epidemic continues to affect the entire financial market. The Federal Reserve launched a third set of emergency credit programs in two days on Wednesday evening, announcing that it will provide bank loans to purchase money market mutual fund guarantees. Assets; this is called "The Money Market Mutual Fund Liquidity Facility (MMLF)", which emulates a similar approach during the global financial crisis and will provide financial institutions with up to one year of loans. The Fed is essentially encouraging bankers to buy assets from these mutual funds, avoiding these funds to sell assets at a discount when they face a family or business withdrawal demand.
In addition, after the European Central Bank convened an emergency meeting, it announced the launch of an emergency debt prevention program (PEPP) worth a total of 750 billion euros (HK $ 6.4 trillion) to reduce borrowing costs in the Euro area. The Bank of England announced a 15-pip interest rate cut to 0.1%. Authorities said that the size of British government bonds and corporate bonds would be increased by 200 billion pounds to 645 billion pounds. Most of the increased assets will be British government bonds.
Thomas Barkin, president of the Federal Reserve Bank of Richmond, said the Federal Reserve has introduced a number of aggressive measures to strengthen the flow of funds in the financial system. The central bank cannot estimate when the economy can recover, and can only ensure the financial system Have sufficient liquidity to avoid capital constraints.
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