Markets regress after FED meeting

Markets regress after FED meeting

Stocks on global markets declined after the FED meeting, also hit by the Coronavirus outbreak. Thursday's June meeting saw markets pull back in trading, both because of fears of a second wave of coronavirus in the United States and the Fed's steadfast stance on the June meeting. The decline in Asian stock markets led by Japan shares. U.S. and European shares fell. Reports that Coronavirus (Covid-19) cases have passed 2 million in the United States have brought an acceleration of losses. U.S. Treasury bonds maintained their current gains following the Fed decision. The FED has not changed its interest rate decision and has indicated it does not forecast a rate hike until 2022. Fed Chairman Jerome Powell reports that the central bank is holding talks on yield curve control. The Nasdaq Composite Index finished Wednesday at a record high. Global stocks are up 40 percent compared with March lows, driven by risky asset purchases triggered by central bank asset purchases and unique incentives. U.S. Treasury Secretary Steven Mnuchin said the U.S. "absolutely" needs additional financial stimulus and should bolster expectations that another round will come this summer. Kerry Craig, the global markets strategist at JPMorgan Asset Management, expressed his opinion on the issue and said: "It was hardly a surprise by the FED. They are focused on delivering a clear message: There will be no movement in interest rates for a long time. The distribution of views on the Committee reinforces uncertainty about how the economy will fare in the COVID aftermath." The eurozone will wait for Finance Ministers to meet on Thursday to discuss the EU recovery package and the Eurogroup presidency.