On Thursday after the Bank of England unveiled a bond-buying program that caused a global rally in government debt, Asian stocks were up after the strongest day for the US stock market since August.
The S&P 500, which snapped a six-day losing streak, went up in Japan, Hong Kong and Australia. There was lingering caution with small declines in US stock futures and the dollar's advance against the pound and the yen.
The BOE released a 65 billion $71 billion plan to support government debt and authorities in Asia, despite the threats from central banks over the past few days, with Federal Reserve officials adamant on further monetary tightening.
Read more: Plunging Markets Spur New Intervention Warnings Across Asia
On Thursday, the pound fell nearly 1% as the dollar rose against its Group-of- 10 counterparts. China s onshore yuan advanced for the first time in nine sessions after the central bank issued a verbal warning against currency speculation.
Julie Biel, Kayne Anderson Rudnick's portfolio manager and senior research analyst, said of the BOE in an interview with Bloomberg TV. Everyone has been backed into a corner by the volatility and market reaction. Read more: UK Government hopes to restore Credibility after BOE Bailout.
After a sharp rally on Wednesday, the Treasuries were little changed. Federal Reserve officials continued to hammer home the hawkish outlook of the central bank. The Fed s Atlanta President Raphael Bostic said he supports raising rates by a further 1.25 percentage point by the end of the year to counter inflation that has been worse than anticipated.
In response to the annexing of Ukraine, the European Union officials unveiled new economic limits on Russia. The new round of sanctions would prevent sales of Russian oil by third party countries that are not allowed to meet a set price cap. Russia is facing $6.7 billion in economic pain because of the plan.
The markets are very pessimistic. Julia Raiskin, Asia-Pacific head of markets for Citigroup Inc., said investors are mostly on the sidelines, despite the fact that there are not many assets that are trading constructively. What is the damage a strong dollar is doing to the environment? That is the theme of the MLIV Pulse survey this week. It is brief and we don't collect your name or any contact information.