Stocks and bonds rallied around the world as the Bank of Japan
unexpectedly stepped up monetary stimulus, joining other central banks
responding to this month’s financial-market turmoil. The yen tumbled,
while Brent crude erased gains.
Japanese yields fell to
records and the yen weakened against its major peers after the BOJ
adopted a negative interest rate. The MSCI All-Country World Index
headed for the highest close in two weeks as the stimulus boosted demand
for stocks. Malaysia’s ringgit led emerging-market currencies higher.
Oil pared gains after Russia said that although it’s prepared to discuss output with the Organization of Petroleum Exporting Countries, no action is currently planned.
The rally took the sting out of the worst start to a year for stocks since 2008 in a selloff that erased $7 trillion from the market value worldwide.
The turbulence prompted the Federal Reserve to say on Wednesday that it was closely monitoring the global environment and the European Central Bank to signal last week it could boost stimulus as soon as March. Talk of oil producers taking action to reduce a glut has helped pare crude’s drop this year after it plunged to a 12-year low.
“The Bank of Japan gave markets a nice surprise to end the month,” said Heinz-Gerd Sonnenschein, a strategist at Deutsche Postbank AG in Bonn, Germany. “It’s a bit too early to say whether we’ll finally get that long-lasting rebound.”
Oil pared gains after Russia said that although it’s prepared to discuss output with the Organization of Petroleum Exporting Countries, no action is currently planned.
The rally took the sting out of the worst start to a year for stocks since 2008 in a selloff that erased $7 trillion from the market value worldwide.
The turbulence prompted the Federal Reserve to say on Wednesday that it was closely monitoring the global environment and the European Central Bank to signal last week it could boost stimulus as soon as March. Talk of oil producers taking action to reduce a glut has helped pare crude’s drop this year after it plunged to a 12-year low.
“The Bank of Japan gave markets a nice surprise to end the month,” said Heinz-Gerd Sonnenschein, a strategist at Deutsche Postbank AG in Bonn, Germany. “It’s a bit too early to say whether we’ll finally get that long-lasting rebound.”
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