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Multi-Asset – CIO Daily Market Update – 16th Mar 2020

Monday, March 16, 2020

CIO Daily Market Update with Will Bartleet
CIO and multi-asset portfolio manager at Pacific Asset Management

On Sunday afternoon, the US Federal Reserve cut interest rates by a full 1% to zero-to-25%bps and announced a new $700 billion asset purchase programme. This takes interest rates back to where they were during the financial crisis and for seven years after.

The Fed indicated that “the Committee expects to maintain this target range until it is confident that the economy has weathered recent events and is on track to achieve its maximum employment and price stability goals.”

In Europe, sweeping bans on travel were placed in an attempt to slow the spread of COVID-19. UK Prime Minister Boris Johnson urged British citizens to avoid “non-essential” travel and encouraged people to work from home where possible.

Markets sold off sharply with the US stock market reversing its gains from Friday’s session and there was weakness in some of riskier credit markets in particular. The Japanese Yen jumped again, particularly against Sterling, providing a partial offset to the Japanese stock market. 


IMPORTANT INFORMATION: Issued and approved by Pacific Capital Partners Limited, a limited company registered in England and Wales, authorised and regulated by the Financial Conduct Authority. The information contained herein is not approved for use by the public and is only intended for recipients who would be generally classified as investment professionals. Information or opinions contained in this article do not constitute an offer to sell or a solicitation, or offer to buy, any securities or financial instruments or investment advice or any advice or recommendation in respect of such securities or other financial instruments. Where past performance is shown it refers to the past and should not be seen as an indication of future performance.

 

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