Market Stimulus Fails to Stop Panic, Hard Cash Dominates Market

Market Stimulus Fails to Stop Panic, Hard Cash Dominates Market

The greenback surged and everything else was blown away Thursday as emergency central bank measures in Europe, Japan, the US and Australia did not halt a fresh wave of panic selling.

Market Stimulus Fails to Stop Panic, Hard Cash Dominates Market

Shares, bonds, gold and commodities fell as the world struggles to contain coronavirus and investors and companies scramble for cash.

U.S. stock futures EScv1 had been a hair’s breadth from pushing session down limits futures plunged 4%, FTSE futures plunged 3%.

The growth-sensitive Australian greenback was contracted 3% to a 17-year low and has fallen over 20% this year.

Practically every stock market in Asia was down and circuit breakers had been hit in Seoul, Jakarta and Manila.

MSCI’s broadest index of Asia-Pacific shares outside Japan plunged some 5% to a four-year low, with Korea and Taiwan leading losses.

Traders reported tremendous pressures in bond markets as distressed funds sold any liquid asset to cover losses in shares and redemptions from investors.

After the severe three-day selloff in Australian 10-year bonds since 1987, the long end of the curve was a smoking ruin.

Benchmark 10-year sovereign bond yields in New Zealand, Korea and Singapore and Thailand soared as prices fell, while U.S. 10 yr Treasuries rose 10 basis points via the session.

The Nikkei shrank 1%, the ASX 200 dropped almost 4%, while the Kospi lost 8% and the Hang Seng 3%.