U.S. stock futures and European indexes began to stabilize a day after the Federal Reserve and European Central Bank announced fresh measures to protect the economy from the impact of the spreading coronavirus.
S&P500 Futures are erasing losses of over 5% from the end of Asia Pacific trading to sit in positive territory at the moment. The Stoxx Europe 600, the region’s benchmark stock index, rose 1.2%, recovering some ground after a steep fall on Wednesday. Italy’s FTSE MIB index was up 4.4%.
Futures tied to the S&P 500 were flat Thursday, the day after a synchronized selloff in U.S. stocks, bonds and commodities as investors scrambled to raise cash to buffet themselves against the widening economic damage caused by the virus.
Late Wednesday, the ECB unveiled a new €750 billion ($818.7 billion) bond-buying program aimed at shielding the region’s economy. The move was in part aimed at addressing concerns over the Italian economy. On Thursday, the Italian 10-year bond yield fell to 1.441% from 2.294% Wednesday. Yields move inversely to prices.
In addition, the Fed said it would launch a new lending facility to backstop U.S. money-market mutual funds. The yield on the 10-year Treasury fell, trading at 1.135% Thursday from 1.259% Wednesday.
Trader Georgi Bozhidarov