pared their morning gains and slipped into the red territory even after the RBI’s Monetary Policy Commitee (MPC) reduced the policy repo rate by 75 basis points to 4.4 per cent to help arrest the economic slowdown in the wake of the coronavirus (Covid-19) outbreak. RBI Governor Shaktikanta Das, however, also said that there’s a rising probability that large parts of the global economy will slip into recession.
In the US, Wall Street rallied overnight despite a record number of new unemployment filings in the United States, as traders focused on the unanimous passage of a $2 trillion coronavirus relief bill in the U.S. Senate. The Dow Jones and the S&P 500 surged over 6 per cent each and the Nasdaq Composite climbed 5.6 per cent.
Asian stocks also rose on Friday. MSCI’s broadest index of Asia-Pacific shares outside Japan rose 1 per cent. Australian shares were up 2 per cent, while Japan’s Nikkei stock index rose 3.65 per cent.
In commodities, oil fell as fears of plunging demand outweighed expectations of support from the US stimulus. Brent fell 2.26 per cent to $26.77 a barrel.
(with inputs from Reuters)