March 3 (USA) - The US Federal Reserve lowered the benchmark lending rate by 0.5% to range of 1-1.25% in a move that surprised analysts. Just a few days earlier the Fed had indicated that it was confident that rate cut was not required.
The expectations of a slowdown due to the coronavirus outbreak are believed to be the reasons for the sudden move. Asian countries weakened while the Chinese yuan strengthened.
US stock markets fell sharply after the announcement and the financial sector was hit the hardest. Tech stocks managed to recover some losses.
The rate cut was expected to make US markets stronger but at the moment the sentiment is negative. Eurozone finance ministers have also indicated that they will reduce interest rates.
We could see a rally from this because this is what the analysts wanted but the coronavirus fears have dimmed expectations for now.
Nigerian stock market rose after release of full year results from
UBA ,
NESTLE &
GUARANTY .
reporting for easykobo.com on Tuesday, March 3 2020 from Lagos, Nigeria