Markets plunge as investors “unconvinced” by central bank actions

Markets fell sharply again on Monday.

The S&P 500 plunged 12.0 percent, the STOXX Europe 600 tumbled 4.9 percent and the Nikkei 225 sank 2.5 percent.

Measures taken by the Federal Reserve on Sunday and other global central banks on Monday to mitigate the impact of the COVID-19 pandemic failed to ease investor concerns.

“While we expect to see more major central banks cut interest rates further in a bid to support growth...there are limits to how low they can go,” Fitch Solutions said in a note on Monday.

Selena Ling, head of treasury research and strategy at OCBC Bank, said that “market players remain unconvinced that monetary policy easing and liquidity injections will solve an essentially healthcare crisis”.