US central bank has produced its biggest bazooka yet, promising massive new support for the American economy
- Latest: FTSE 100 hits eight-year closing low
- US Fed announces new measures
- Fed pledges unlimited QE to support economy
- Experts: A massive move by US central bank
- Coronavirus – global live updates
- See all our coronavirus coverage
Newsflash: Britain’s blue-chip stock index has hit its lowest closing level since 2011.
The FTSE 100 has ended the day down 196 points, or 3.79%, at 4993.89 points.
The coronavirus continues to hang over equity markets. A medial report said the number of infections has increased to 350,000 worldwide, and the fear factor is setting in for traders, which is why they are dumping equities. As far as the west is concerned, the situation is getting worse by the day, in addition to that, there is a perception things will get even worse within the next few weeks.
The Fed’s announcement about a quantitative easing programme that could run on for the foreseeable future jolted European equity benchmarks higher, but the optimism was short lived, and the markets moved south again. The absence of a fiscal stimulus package from the US government is playing a role in the sell-off too.
Meanwhile…the Bank of England just issued a joint statement alongside the chairmen of the UK’s largest banks to assure they are in a “strong position” & are “rapidly getting systems in place” to support borrowers.
Comes as banks like HSBC report 1hr+ wait times… pic.twitter.com/wG90UXwhV5