Stock markets around the world retreated Thursday as fears over a second wave of coronavirus infections and a gloomy economic outlook from the U.S. Federal Reserve rattled investors.
Markets have reacted negatively to a dour economic outlook from the Fed on Wednesday. The U.S. central bank forecast a 6.5% contraction in U.S. gross domestic product for 2020, with a 5% rebound in 2021 and 3.5% growth in 2022.
The Fed also ruled out any hikes of its federal funds target rate, which currently sits at an historic low of 0-0.25%, through 2022. The Fed's outlook has exacerbated skepticism surrounding the much-hoped for "v-shaped" recovery for the global economy as it emerges from the coronavirus pandemic. "After the initial reopening bounce, the path to full employment will become a lot more challenging," Fidelity International Head of Global Macro Anna Stupnytska said following the Fed's announcements on Wednesday.
"In addition, risks related to subsequent waves of infection, the upcoming elections, weak global recovery and trade tensions would likely complicate the recovery path."
United States Latest News, United States Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Asia stock rush pauses, bonds rally on sober FedAsian shares eased on Thursday while bonds rallied after a downbeat economic outlook from the U.S. Federal Reserve stoked speculation it would have to add to already historic levels of stimulus to safeguard recovery.
Read more »
Wall Street expects trillions more in stimulus from the Fed, Congress: CNBC Fed SurveyThe Fed's two-day meeting begins Tuesday and a new survey shows that market participants expect trillions more in stimulus from both the central bank and Congress. CNBC's Steve Liesman reports.
Read more »
Global Markets Drop on Downbeat Fed MessageInternational stocks declined, after the Federal Reserve vowed to keep its monetary policy aggressive and struck a cautious note on jobs, prompting investors to revisit their assumptions about U.S. economic recovery.
Read more »
AMC Entertainment Stock Pops On Global Opening HopesAMC Entertainment stock jumped over 15% at open in a down market Wednesday at open after execs outlined global opening plans at a conference call late yesterday afternoon. Share had popped by over …
Read more »
With crisis response in place, Fed looks to long termThe Federal Reserve completes its latest policy meeting on Wednesday with attention turning from its massive response to the coronavirus pandemic and toward its still-developing plans to strengthen and lengthen a nascent economic recovery.
Read more »
Fed Officials Project No Rate Increases Through 2022Federal Reserve officials projected no plans to raise interest rates through 2022 and said they were committed to providing more support to the economy following shutdowns to contain the coronavirus.
Read more »