Central bank action “not yet credible nor coordinated” -BofA

Reuters

LONDON (Reuters) – Interventions in the last week have helped calm panicking markets but the actions taken by the Bank of Japan and Bank of England are “not yet credible nor coordinated”, Bank of America said in a note on Friday.

BofA analysts also said their ‘Bull & Bear’ indicator, which seeks to track market trends, remains unchanged at “extreme bearish” level.

With government borrowing costs soaring despite aggressive central bank rate hikes, and inflation rampaging, investors have fled risk assets in the past couple of weeks, given the mounting chances of global recession.

Related News:   US consumer confidence steady in March; inflation expectations creep up

Yet equity funds recorded $7.6 billion of inflows in the week to Wednesday, while weekly outflows from bonds totalled $13.7 billion, BofA said, citing EPFR data.


Gold saw outflows totalling $1.4 billion, the 14th straight week of declines and the longest consecutive streak since January 2014.


Selling of UK equities is on track for its worst-ever year, BofA said.

Outflows from investment grade, high yield and emerging market debt stood at $13.7 billion, the highest in 13 weeks.

(Reporting by Lucy Raitano; Editing by Amanda Cooper and Catherine Evans)

tagreuters.com2022binary_LYNXMPEI8T0MW-BASEIMAGE

You appear to be using an ad blocker

Shore News Network is a free website that does not use paywalls or charge for access to original, breaking news content. In order to provide this free service, we rely on advertisements. Please support our journalism by disabling your ad blocker for this website.